India's Pension System Gets D-Grade, Ranks Among Lowest Worldwide: Global Pension Index 2025
Mercer and the CFA Institute on Thursday, October 16, published Global Pension Index 2025, which evaluates benchmarks retirement income systems, giving insight into the sustainable retirement across the world.
Notably, India has ranked the lowest in the world in the Global Pension Index 2025, with a D-grade and a score of 43.8 out of 100. India is considered weak in pension adequecy, reflecting tht the benefits are not meeting relative needs of the people.
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While India received Grade E on adequacy, it got D and C on sustainability and integrity respectively. 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.
Netherlands, Iceland, Singapore and Denmark are once again leading the index rank by balancing adequacy, sustainability, and trust in the pension system. These countries offer strong benefits, sound regulation, and solid asset bases, the report pointed out.
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.
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.
To address the challenges in the low ranking countries, 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.
