Australia has scored an ‘A’ in the world rankings for retirement income systems for the first time, putting us in the top six retirement systems in the world.
The Marsh CFA Institute Global Pension Index assesses 55 countries on three pillars – adequacy, sustainability and integrity – and fifty indicators. It takes into account factors including government pension coverage, total assets, system design, regulation and costs.
Australia scored 80.6%, its highest mark ever, putting it in the ‘A’ category along with several Scandinavian countries, Denmark, Singapore and Israel.
The Index describes an ‘A’ grade as ‘a robust retirement income system that delivers good benefits, is sustainable and has a high level of integrity’. The result is an improvement from last year, when Australia received a B+ with an overall score of 77.6.
“Getting an A in this important index is a strong endorsement of our retirement income system, which has super as its heart, along with the Age Pension and private savings,” said ASFA CEO Mary Delahunty.
“Over the past thirty years our unique super system has built a strong private savings base which will sustain the retirement of Australians in years to come.
“Where other comparable countries are spending 10% or more of their GDP on state pensions, Australia spends 2.4% thanks to super, and that number is falling.
“Our system is strong, sustainable and delivering for members, and ASFA is delighted the Global Pension Index has recognised that this year.”
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About ASFA
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry, and the only industry body that represents all parts of the APRA-regulated system.
Our more than 100 members include retail, industry, corporate and public sector funds and their service providers. For over sixty years, ASFA has been the voice of super, advocating for a dignified retirement for all Australians. Through research, advocacy and collaboration, ASFA promotes efficiency, sustainability and trust in Australia’s world-class retirement income system.