The country’s retirement system ranks last in the global pension index in india

The country’s retirement system ranks last
in the global pension index, says a study
by global consulting major Mercer.
Still, the National Pension System (NPS),
which was launched by the government in
June as part of Pradhan Mantri Jan Dhan
Yojana, will help the country improve its
index, the study said.
The country’s index value fell from 43.5
in 2014 to 40.3 in 2015, primarily due to
a recent review conducted by the
economic intelligence unit that showed a
material reduction in its household
savings rate, Melbourne Mercer Global
Pension Index (MMGPI) report said.
Enhanced participation in the National
Pension System will help the country
increase its index value, it added.
Denmark has been rated as the country
with the best retirement system in the
world. Australia, Germany, Japan,
Singapore and the UK have increased
their pension age to offset the increase in
life expectancies.
Now in its seventh year, the MMGPI
measured 25 retirement income systems
against more than 40 indicators, under
the sub-indices of adequacy,
sustainability and integrity.
The report covers close to 60 percent of
the world’s population and suggests how
governments can provide adequate and
sustainable benefits that protect their
citizens, against longevity risk.
The report rated Denmark as the country
with the best retirement system for the
fourth consecutive year in 2015, with an
overall score of 81.7.
However, it said that the Indian retirement
system continues to rank last.