SINGAPORE: Singapore’s Central Provident Fund (CPF) system has maintained its position as the top retirement pension system in Asia. The 2023 Mercer CFA Institute Global Pension Plan, released on Tuesday (October 17) ranked the CPF system as the best in Asia in the Gold Index Ranking for the fifteenth consecutive year.
The Mercer CFA Institute Global Pension Plan, a collaborative effort involving Mercer, the world’s largest human resources management consulting organization, Australia’s Monash University Business School, and the CFA Institute, meticulously examined the retirement and pension systems around the world. Their criteria for evaluation centred on the sustainability, adequacy, and integrity of each respective local system, accounting for 64% of the world’s population.
Singapore’s CPF system emerged as the gold standard among Asian nations and made an impressive leap, rising two places from its previous year’s ranking. Out of the 47 countries and regions evaluated in the global pension landscape, Singapore’s CPF system secured the seventh spot.
Singapore’s CPF system boasted an overall score of 76.3, up from the previous year’s 74.1. This performance earned Singapore’s CPF system a B+ grade for the first time.
The key driving factor behind this success was the significant improvement in CPF coverage. Moreover, Singapore’s overall ranking surged from ninth place to seventh place in the 2023 assessment, maintaining its dominance as the leading pension system in Asia.
Northern European nations emerged as the global leaders in retirement and pension systems. Iceland, the Netherlands, and Denmark retained their positions as the top three regions with the best retirement and pension systems worldwide.
Interestingly, Iceland, which claimed the top spot in the previous year, exchanged places with the Netherlands, which secured the first position this year with an impressive overall score of 85, while Iceland earned an overall score of 83.5.
In Asia, Hong Kong and Japan secured the second and third positions, respectively. This demonstrated the robust and dynamic landscape of retirement and pension systems in the region.
Notably, the 2023 Global Pension Index introduced three new retirement income systems for evaluation – Botswana, Croatia, and Kazakhstan, reflecting the evolving global landscape of retirement planning and pension provision. These additions underscore the importance of adapting to changing demographics and economic challenges to ensure the security and adequacy of retirement incomes.