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Global pension systems face demographic crisis, report warns
Global pension systems are confronting a significant demographic crisis driven by increasing longevity and declining birth rates. According to the 2026 Marsh CFA Institute Global Pension Index, which covers 55 pension systems representing approximately 66% of the world's population, 43 of these systems have fertility rates below the replacement level of 2.1 children per woman. In 23 systems, the rate has fallen below 1.5.
Increased life expectancy is placing additional strain on funds. In developed regions, life expectancy at age 65 has risen by 50.9% since 1950, now averaging about 20 additional years. Sebastien Betermier, executive director of the International Centre for Pension Management, described the financial burden on future generations as a ‘ticking time bomb,’ noting that some funds have members who have been retired for nearly half a century.
The crisis affects different types of plans uniquely: defined-benefit schemes face mounting liabilities as retirees live longer, while defined-contribution members risk outliving their accumulated savings. To address these challenges, Marsh advocates for ‘flexible’ retirement ages rather than a single fixed age to accommodate varying personal and professional circumstances.
Entities
CFA Institute · CNBC · European Commission · International Centre for Pension Management · International Pension Management Center · Marsh · Marsh CFA Institute · Marsh CFA Institute Global Pension Index · Monash University · Sebastian Betermier · Sebastien Betermier
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 6 SOURCES] Life expectancy at age 65 in developed regions has increased by 50.9% since 1950. www.pensionpolicyinternational.com · investitor.me · www.b92.net · www.in.gr · novini247.com · +1 more
- [● 6 SOURCES] Sebastien Betermier described the pension funding challenge as a ‘ticking time bomb’. www.pensionpolicyinternational.com · investitor.me · www.b92.net · www.in.gr · novini247.com · +1 more
- [● 6 SOURCES] 23 pension systems have fertility rates below 1.5. www.pensionpolicyinternational.com · investitor.me · www.b92.net · www.in.gr · novini247.com · +1 more
- [● 6 SOURCES] 43 of the 55 pension systems in the 2026 Marsh CFA Institute Global Pension Index have fertility rates below 2.1. www.pensionpolicyinternational.com · investitor.me · www.b92.net · www.in.gr · novini247.com · +1 more
- [○ 1 SOURCE] Marsh advocates for flexible retirement ages instead of a single fixed age. investmentnews.co.nz