Netherlands Tops Global Pension Index for Fourth Year as Europe Faces Sustainability Strain

The Netherlands ranks first in the Marsh CFA Institute Global Pension Index with a score of 85.8 out of 100, topping the ranking for the fourth consecutive year, followed by Denmark at 84.1 and Iceland at 84.0. The index assessed 55 retirement systems covering 66% of the global population across adequacy, sustainability and integrity sub-indices. The Dutch system combines a state pension income floor, broad workplace coverage, a large invested asset pool and strong governance, but is mid-transition from defined benefits to individual contribution-based pots, with completion expected by 2028. Several major European systems score well on benefits but poorly on long-term funding: Spain recorded 83 for adequacy against 33 for sustainability, while France posted 85 and 49.3 respectively. Turkey ranks lowest overall in Europe. Marsh's Graham Pearce said unfunded systems face mounting pressure as the ratio of retirees to workers rises, and warned that without action such as raising retirement ages or early pre-funding, governments may eventually face difficult decisions including benefit cuts.