According to a survey, India’s system is ranked 41st out of 44 countries analyzed for retirement income systems. India’s overall index value was 44.4, up from 43.3 in 2021.
According to the Mercer CFA Institute Global Pension Index Survey (MCGPI) 2022, India’s pension system has improved mainly due to an increase in the net replacement rate, i.e., more people coming into the pension net than earning.
The MCGPI is a comprehensive study of 44 global pension systems, which account for 65 percent of the world’s population.
Iceland tops the ranking globally, followed by the Netherlands, Denmark, Israel, Finland and Australia.
According to the MCGPI, Thailand was ranked 44th, the Philippines 43rd and Argentina 42nd.
The lack of social security coverage in India can significantly improve the substantial and sustainability sub-index by increasing coverage under the private pension system, the report said.
In addition, regulations may also be strengthened in India to provide a higher level of security for private pension schemes, which will enhance the authenticity of the system.