India's pension system has improved a few notches from 2021 to now rank 41 out of the 44 countries examined, according to a report. As per the report, India had an overall indicator value of 44.4, up from 43.3 in 2021, and ranked 41 out of the 44 withdrawal income systems analysed.

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The enhancement in ranks was primarily due to an increase in its net relief rates, according to the 2022 Mercer CFA Institute Global Pension Index check( MCGPI).

The MCGPI is a comprehensive study of 44 global pension systems, counting for 65 per cent of the world's population. It benchmarks withdrawal income systems around the world, points out failings in each system, and suggests possible areas of reform that would help give further acceptable and sustainable withdrawal benefits.

According to the report, in the absence of social security content in India, the acceptability and sustainability sub-indices can be bettered significantly by boosting content under private pension arrangements. 

Regulations in India can also be strengthened to give a lesser position of security for private pension plans, which would enhance the system's integrity.

The penetration of private pension plans is low in India and with over 95 per cent of the total pool being in the unorganised sector, there's a need for strong facilitation so that these workers aren't left out of the pension system. There's stopgap that new labour canons, when enforced, would give access to similar content and drive the necessary enhancement in the acceptability and sustainabilitysub-indices, it stated.

Countries with Best Ranked Retirement Income Systems Ranked by MCGPI

1) Iceland
2) Netherlands
3) Denmark 
4) Israel
5) Finland 
6) Australia
.
.
41) India
42) Argentina
43) Philippines 
44) Thailand 

 

(With PTI Inputs)