Indian Pension System Ranked Among Lowest in the World: Report
The Wire Staff
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New Delhi: The Indian pension system ranked among the lowest in the world according to the Mercer CFA Institute Global Pension Index 2025.
India was awarded ‘Grade D’, alongside Turkey, Argentina, and the Philippines. The report said that these countries showed "some desirable features but major weaknesses that need urgent attention".
India’s index value reduced from 44 last year to 43.8 in 2025 per the report, which evaluated 52 countries on three parameters: adequacy, sustainability and integrity, weighted at 40%, 35% and 25%, respectively.
India received Grade E on adequacy, and D and C on sustainability and integrity, the Telegraph reported.
The report recommended introducing a minimum income floor for the poorest elderly citizens, expanding pension coverage to informal workers and building pension assets over time, to increase India’s ranking.
The report also highlighted India’s assets-to-GDP ratio as a major concern. According to the Economic Survey 2024-25, India’s total pension assets account for a mere 21% of the GDP. For context, pension assets in OECD countries account for over 80% of their GDPs, the Telegraph reported.
Meanwhile, Singapore ventured into the top tier of the global pension index for the first time by securing Grade A. Netherlands retained its position on number 1, accompanied by Iceland, Denmark and Israel in the top tier, the report said.
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