Global Pension Index 2026 reveals demographic funding pressures

The 2026 Marsh CFA Institute Global Pension Index highlights significant financial pressures on pension systems worldwide due to aging populations and declining birth rates. In 43 of the 55 systems analyzed, fertility rates have fallen below the replacement level of 2.1 children per woman. As life expectancy increases, pension funds face longer payment obligations while the working-age population shrinks, creating what experts describe as a “time bomb” for future generations.

Netherlands secured the top global position for the fourth consecutive time with a score of 85.8, driven by its combination of state pensions, employer-based savings, and strong financial management. Other top-tier performers receiving an ‘A’ rating include Denmark, Iceland, Singapore, Israel, and Australia.

In Europe, Turkey ranked last among the 19 evaluated countries, scoring low in both income adequacy and long-term sustainability. Other major economies showed varying levels of stability: Sweden, Finland, and Norway performed strongly, while France, Belgium, and Germany faced challenges regarding long-term sustainability despite providing adequate current income. In the United States, concerns remain regarding the depletion of Social Security reserves by 2032.