Furthermore, any comparison of systems is likely to be controversial as each system has evolved from that country’s particular economic, social, cultural, political and historical circumstances. There is no perfect system that can be applied universally around the world. However there are certain features and characteristics of retirement income systems that are likely to lead to improved financial benefits for aged individuals and households, an increased likelihood of future sustainability of the system, and a greater level of confidence and trust within the community.
With these desirable outcomes in mind, the Melbourne Mercer Global Pension Index uses three sub-indices – adequacy, sustainability and integrity – to measure each country’s retirement income system against more than 50 questions.
- Pension index