Global consultancy firm Mercer, which specialises in pensions systems, has named Singapore as having the best pension system in Asia in its annual report.
The report looked at 30 countries over 60 percent of the world’s population and rated pension systems on their adequacy, sustainability and integrity.
Singapore received a B rating with an overall index score of 69.4, up 2.4 points from last year.
The global average of was 59.9, and no country received an A rating.
Singapore’s retirement income system mainly comprises the CPF, which covers all Singaporeans and Permanent Residents.
Garry Hawker, Mercer’s Asia zone wealth business coordinator and director of strategic research of growth markets, said in a statement:
“As one of the most developed pension schemes in Asia, Singapore has continued to make improvements through CPF in providing more flexibility to its members.”
“The overall index value for the Singaporean system could be further increased by reducing the barriers to establishing tax-approved group corporate retirement plans, opening CPF to non-residents who comprise more than one-third of the labour force, and increasing the labour force participation rate at older ages as life expectancies rise.”
In this year’s index, Denmark retained top position with an overall score of 78.9.
This is Denmark’s 6th consecutive at the top of Mercer’s rating list, coming ahead of the Netherlands an Australia.