SINGAPORE: Singapore took the top position for retirement preparedness for Asia Pacific in the Mercer Global Pension Index (MCGPI), while it ranked ninth place out of 44 countries globally.
Coming up second place behind Singapore is Hong Kong SAR and Malaysia, who rounded up the top three spots for Asia-Pacific.
The MCGPI is an in-depth study of 44 global pension systems, accounting for 65% of the world’s population. It benchmarks retirement income across various countries and suggests possible areas that could help provide more adequate retirement benefits.
Singapore (74.1) saw a slight dip in its overall index value in 2021, but it bounced back this year mainly due to the revised scoring matrix and increased net replacement rates.
Most retirement income systems in Asia saw overall improvements except for China (54.5), Indonesia (49.2) and the Philippines (42).
Despite progress, Asia’s retirement systems continue to lag the world, with the region's average index value standing at 53.8, way below the global average of 63.
“The economic impact of the pandemic, as well as a volatile geopolitical landscape, has led to the readjustment of priorities for not just Asian markets but the world in general. While Asia still lags the global average in the overall index value, we are seeing positive year-on-year improvements for most of the markets,” said Janet Li, Asia Wealth Business Leader at Mercer.