Singapore ranks higher in global pension index but still lags in adequacy

It jumped three spots to 7th.

Singapore rose through the ranks in the recent Mercer Global Pension Index (MMGPI) with marked improvements in its retirement income system.

Singapore, with an index value of 67, climbed three notches up to seventh at this year's ranking with its score raised to grade B from C+.

According to the Australian Centre for Financial Studies (ACFS), which released the index, grade B score is given to countries with 60-65 index value in retirement income system. It is characterised by sound structure, with many good features but still requires improvement for some areas.

ACFS noted that the improvement in Singapore's score was primarily caused by the increased level of financial support provided to the poor.

Singapore still lags in terms of pension adequacy with index value of just 61.4. This is, however, higher than last year's 55.7.

Denmark remained the top performer for the fifth consecutive year with A grading- which means having a first class and robust retirement income system that delivers good benefits and is sustainable with a high level of integrity.

It is followed by Australia with a grading of B+.

Singapore, meanwhile, tops Asian peers in the regional ranking for four years in a row.