India Ranks Last Among 25 Countries in Retirement System

According to Melbourne Mercer Global Pension Index report, India is still last among the 25 countries on the list. Denmark ranked first on the index thereby becoming the world’s leading country with the best retirement system. Countries such as Australia, Germany, Japan, Singapore and the UK also ranked high on the index with revised retirement policies in respect to pension age, reports ET.

Owing to the material reduction in household savings rate in India, the index value of the nation dropped from 43.5 in 2014 to 40.3 in 2015.

This is the seventh edition of the index where 25 retirement systems were judged on the basis of adequacy, sustainability and integrity and 40+ indicators. Having surveyed almost 60 pct of the world’s population, this index also has handed over suggestions on building an adequate and sustainable model which can reap benefits for the citizens and lessen the risk to running out savings while ageing. This edition of the Melbourne Mercer Global Pension Index evaluated the changes these retirement systems have brought about in the last seven years and also gauged their sustainability.

"The National Pension System (NPS) is gradually gaining popularity in India. Continuing to improve education and communication will help increase coverage of pension arrangements for the working population in the organized sector, particularly popularizing the corporate model of NPS among Indian employers," said Anil Lobo, business leader for retirement, Mercer India. 

"Implementing the right reforms to improve pension systems and provide financial security in retirement has never been more critical for both individuals and societies." said David Knox, Author of the report and senior partner at Mercer.

The effort of the index is to draw attention to strengths and pitfalls of the retirement systems globally thereby focusing on improving these systems.

Considering India being on the last rank, the retirement system needs to introduce a support system for the poorest aged individuals, increased pension coverage for the unorganized working class, defining definite access age and develop the regulatory requirements in the private pension system.

source:siliconindia