Mercer Consulting, a leading global management consulting firm, has released the 13th edition of the Mercer Global Pension Index (2021 MCGPI). With an overall index value of 43.3, Indian Pension Systems ranked 40th out of the 43 systems on the overall index ranking and has the lowest rank in the adequacy sub-index with 33.5.
Note:
The 2021 MCGPI, has added 4 new retirement systems: Iceland, Taiwan, UAE and Uruguay.
India in MCGPI 2021:
i.According to the 2021 MCGPI, India needs strategic reforms to revamp the Indian pension system to ensure adequate retirement income.
ii.India has scored 33.5 in adequacy; 41.8 in sustainability; and 61.0 in integrity.
iii.In India, the coverage under the private pension arrangements is only around 6%.
iv.With more than 90% of the total workforce under the unorganised sector, India has to take action to get a larger workforce under pension savings.
v.To improve the adequacy index, the report suggests introducing a minimum level of support for the poorest aged individuals and increasing coverage of pension arrangements for the unorganized.
About Mercer CFA Institute Global Pension Index(MCGPI):
i.MCGPI is an annual survey by Mercer Consulting, which aims to benchmark the retirement income system.
ii.MCGPI uses three sub-indices, adequacy, sustainability and integrity to measure each retirement income system against more than 50 indicators.
iii.The Index is published by Mercer, in collaboration with CFA Institute and the Monash Centre for Financial Studies.
2021 MCGPI:
Overall:
| Rank | Country | Overall Index value |
|---|---|---|
| 40 | India | 43.3 |
| 1 | Iceland | 84.2 |
| 2 | Netherlands | 83.5 |
| 3 | Denmark | 82.0 |
| 43(lowest) | Thailand | 40.6 |
Adequacy:
The adequacy index represents the adequacy of the benefits that are being provided
- Iceland topped the adequacy sub index with 82.7 followed by the Netherlands with 82.3 and Norway with 81.2.
Sustainability:
The Sustainability index represents the likelihood that the current system is able to provide benefits in the future
- Iceland topped the adequacy sub index with 84.6 followed by Denmark with 83.5 and the Netherlands with 81.6.
Integrity:
The Integrity index includes the legislative requirements that influence the overall governance and operations of the system and affects the confidence of the citizens on their systems.
- Finland topped the adequacy sub index with 93.1 followed by Norway with 90.2 and the Netherlands with 87.9.
About Mercer:
President and CEO– Martine Ferland
Headquarters– New York, United States
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India was positioned at an overall rank of 59th among 110 countries in the 3rd edition of ‘Digital Quality of Life Index (DQL) 2021’ prepared by cybersecurity company ‘Surfshark’. This is 2 positions lower than the 57th rank secured by India in the 2020 Index.
- For the 2nd consecutive time, Denmark topped the ranking, followed by South Korea & Finland in 2nd & 3rd positions.
