India Moves to 32nd Position in the Melbourne Mercer Global Pension Index
In recent development, India has been able to improve its ranking albeit a bit to 32nd position in terms of providing pension and retirement benefits to its citizen as per the Melbourne Mercer Global Pension Index (MMGPI) 2019.
The country’s score in the index rose to 45.6 this year as compared a score of 44.6 in the previous year. India’s value increased largely due to the improvement in all three sub indices of adequacy, sustainability and integrity.
As per the index, the improvement was credited to small increases in scores across various dimensions including net household savings, greater flexibility in managing retirement and part time work, steady progress in governance and reporting around private pension plans. It was also stated that the draft wages and social security reforms, that have been initiated in India indicate the intent of policymakers in creating an inclusive and sustainable pension system. The reports cited the success the success of many Government initiatives in this regards. These include:
- Atal Pension Yojana (APY) available to all citizens below the age of 40, but is aimed at the unorganized sector and encourages them to save voluntarily before retirement.
- Pradhan Mantri Karam Yogi Maan-Dhan Scheme for retailers and shopkeepers.
- PM KISAN Yojana for small and marginal farmers.
- Pradhan Mantri Shram-Yogi Maan-Dhan that covers workers in unorganized sector with equal contribution from the government.
The overall index was topped by Netherlands with the highest index value of 81.5, while Thailand recorded the lowest index value of 39.4.
Sub-index wise, Ireland has the highest score for adequacy with 35.8, Italy for sustainability with 19 and Philippines for integrity with 34.7.
The Melbourne Mercer Global Pension Index (MMGPI) is published by the Australian Centre for Financial Studies (ACFS) in collaboration with Mercer, with most of the funding from the State Government of Victoria, as part of its ongoing support for leadership in the financial services sector. The primary objective of this research is to benchmark each country’s retirement income system so we can all learn from each other and thereby improve our systems and generate better outcomes for our present and future retirees.
SOURCE: Economic Times