Aging populations are straining retirement systems worldwide

NEW YORK | October 20, 2026

Today, Marsh (NYSE: MRSH), a leading global professional services firm, and CFA Institute, the global association of investment professionals, today released the 18th annual Marsh CFA Institute Global Pension Index (MCGPI), comparing 55 retirement income systems across the globe, covering 66% of the world's population.

As fertility rates fall and life expectancies rise, the world's retirement income systems face mounting pressure. This year's Index examines how aging populations will impact the design and long-term sustainability of pension systems worldwide - and what policymakers should do to prepare.

"The decisions we make today to build sustainable systems will have a profound impact on people's financial security. Increasing longevity is too significant to ignore, with wide-ranging impacts on individuals, governments, economies and societies. The time to act is now," said Pat Tomlinson, President and CEO of Marsh People and Investments.

"Pension systems are under real strain," said Christine Mahoney, the Global Defined Benefit and Defined Contribution Leader of Marsh People and Investments. "Governments that clarify their pension objectives, strengthen funding, and build flexibility into retirement design will be far better positioned to deliver dignified, secure retirements for the generations ahead."

Mona Naqvi, Managing Director of the CFA Institute Research and Policy Center, added: "Retirement systems differ across markets, but all face the same long-term challenge: delivering reliable income as demographics shift and markets change. No single policy or investment decision can achieve that. It takes sound system design and governance, alongside careful oversight of investments by those with a fiduciary duty to savers and retirees. The test is whether those decisions work together to serve people throughout retirement and remain sound for the generations that follow."

Adapting systems to a longer, more flexible retirement

The 2026 Index highlights three key policy responses needed to address these demographic realities: establishing clear objectives for pension systems; prioritizing the funding of future retirement obligations; and increasing flexibility in pension product design and retirement age structures. Traditional retirement ages of 60 or 65 are becoming increasingly misaligned with the realities of longer, healthier lives. As the boundary between work and retirement continues to blur - driven in part by the rise of gig and part-time work - pension systems must evolve to reflect the way people live and work in later life.

"The data shows that even the best-performing systems need to keep evolving; no system can afford to stand still in the face of these demographic shifts," commented Tim Jenkins, lead author of the report and Partner at Marsh People and Investments. "The right approach for one country, one system, or even one individual will not be the right approach for another. But what every system shares is the need to adapt. Retirement design must become more flexible - in when people access income, in how products are structured, and in how we think about the line between work and retirement. That flexibility is no longer optional."

While disparities persist, meaningful improvements are apparent across the Index

The retirement income systems of the Netherlands, Denmark, Iceland, Singapore and Israel retained their A grade in 2026 with Index scores greater than 80. For the first time, Australia has also received an A grade. These six systems are robust: they deliver good benefits, are sustainable and have a high level of integrity.

The Index uses the weighted average of the sub-indices of adequacy, sustainability and integrity. For each sub-index, the systems with the highest values were Kuwait for adequacy, Denmark for sustainability and Finland for integrity.

This year, five retirement income systems - Australia, UAE, Oman, Panama and China - have improved their Index grade. The average value for the overall Index has increased by 1.1 points from 2025.