India’s pension system has landed at the bottom of the global rankings, underscoring persistent challenges in coverage, adequacy and regulation. India’s overall index value slipped to 43.8 in 2025 from 44 last year, according to the Mercer report, which evaluated 52 countries on three key parameters: adequacy, sustainability and integrity with weights of 40 per cent, 35 per cent and 25 per cent, respectively.
India’s retirement income system continues to trail global best practices, as the Global Pension Index 2025 ranks India with a D-grade and a score of 43.8 out of 100, notably behind top-performing systems. According to the Global Pension Index 2025, published by Mercer and the CFA Institute, few nations have cracked the code on balancing adequacy, sustainability, and trust — with the Netherlands, Iceland, and Denmark once again leading, and India, Philippines, and Thailand among those lagging far behind.
“The research highlights significant diversity between systems around the world, with index scores ranging from 43.8 to 85.4. The Netherlands, Iceland, Denmark, Singapore, and Israel rank highest. These nations offer strong benefits, sound regulation, and solid asset bases. India ranks lowest,” said the report.
The Global Pension Index 2025 benchmarks 52 retirement income systems across the world, covering about 65 per cent of the world’s population. Using three pillars — adequacy (40 per cent weight), sustainability (35 per cent), and integrity (25 per cent) — the index provides a comparative view of how well countries’ pension systems are delivering.
