According to the 2022 Mercer CFA Institute Global Pension Index (MCGPI), India ranks 41st out of the 44 countries, as compared to 40th position out of 43 countries in 2021.
- India had an overall indicator value of 44.4, up from 43.3 in 2021. However, it is below that in 2020 when India ranked 34th out of 39 countries with a value of 45.7.
Who prepared the MCGPI?
The index is prepared in collaboration with United States (US)-based CFA Institute, an international association of investment professionals; the Monash Centre for Financial Studies (MCFS); and Mercer, US-based global asset management firm.
It is a comprehensive study of 44 global pension systems accounting for 65% of the world’s population. It benchmarks retirement income systems around the world, highlights shortcomings in each system, and suggests possible areas of reform.
- It assesses the pension system under three sub-heads of adequacy, sustainability and integrity to measure each retirement system against more than 50 indicators.
Table showing Top 3 Countries in Retirement Income Systems Ranked by MCGPI
i.India’s score in MCGPI’s sub-heads is 37.6 for adequacy; 40.7 for sustainability; and 60.4 for integrity.
ii.The survey pointed out that India needs to strengthen its regulatory framework and boost the coverage under private pension arrangements, as penetration of private investment in India is low.
iii.95% of the total workforce in India is in the unorganized sector, therefore, India needs inclusive programs for all workers.
iv.India’s pension system is getting stronger, but much work still needs to be done.
Recent Related News:
i.On August 3, 2022, the United Nations’ (UN) third brief of the Global Crisis Response Group (GCRG) on Food, Energy and Finance was released stating 84% of nearly $1 trillion of global investment in energy transition technologies in 2021 was deployed in China, India, Japan, the US and Europe.
ii.According to the Worldline India Digital Payments Report Q1 2022, India saw 9.36 billion transactions amounting to Rs 10.25 trillion in the first quarter (January-March period) via various payment modes led by Unified Payment Interface (UPI).
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