Summary of this article
India ranked 53rd out of 55 systems globally with a score of 46.8.
Netherlands topped the 2026 index with an impressive score of 85.8.
India scored high in integrity but lagged heavily in adequacy.
India’s overall score on the Marsh CFA Institute Global Pension Index 2026 stood at 46.8 out of 100. The 18th edition of the study covered 55 retirement income systems globally, covering around 66 per cent of the world’s population. This year, the study added three more countries, Dominican Republic, Kenya, and Qatar, to the bucket. Among all, India’s retirement income system ranked 53rd out of 55 benchmarked pension systems.
While top-performing countries, such as the Netherlands, Denmark, Iceland, Singapore, Israel, and Australia, came on top in 2026 with A-grade ratings, India remained in the D category. The study categorises the score in five categories from A to E. A category includes pension income systems that score 80 or above, whereas the D category represents a score between 35 and 49. A represents a retirement income system that is sustainable, has high integrity, and delivers good benefits to citizens. The ‘D’ category represents a system that has some desirable features but also major weaknesses that make its sustainability doubtful if not addressed properly.
Three Weighted Sub-Indices
The index study assesses retirement income systems based on three weighted sub-indices: Adequacy (40 per cent), which evaluates current benefit delivery; Sustainability (35 per cent), which measures long-term resilience; and Integrity (25 per cent), which measures systemic trust and member confidence.
These weightings take into account immediate needs, sustainability, and trust and have remained unchanged since the index was introduced in 2009.
Where Does India Stand?
India’s overall index score of 46.8 in 2026 shows an improvement of three points from 43.8 in 2025. This increase was mainly due to a revision in the proportion of members covered by the public pension system and a change in the scoring methodology of the Integrity sub-index.
The study reveals a significant increase in the Integrity score from 58.4 in 2025 to 67.3 in 2026 (earning a B grade). This earned India 50th rank out of 55 pension systems in the Integrity category. However, on the other two pillars, India’s performance remains low. In Adequacy, India scored 35.8 compared to 43.8 in 2025, ranking last at 55th globally. On the Sustainability pillar, India’s score is 44.6, up from 43.8 in 2025, ranking 45th out of 55 countries.
The study notes that the retirement framework in India consists of an earnings-related employee pension scheme (EPS), a defined contribution employee provident fund (EPFO), and supplementary employer-managed pension schemes. It also notes other government initiatives under universal social security that target the unorganised sector. It also notes that the Indian pension system features good member communication and protection.
The index promotes pension reforms to strengthen financial security for ageing populations. For improvement in India’s overall index value, the study outlines three key areas. It suggests an increase in the minimum support level for the poorest older individuals, expansion of pension coverage for unorganised workers to build a larger asset pool over time, and improvement in regulatory requirements for the private pension system.
