"Korean Pension System Ranks 42nd Among 47 Countries... US 22nd, Japan 30th"

Global Pension Index Scores 51.2 out of 100 Points

South Korea's pension system was ranked only 42nd out of 47 countries worldwide.

According to the 2023 Global Pension Index (MCGPA) released on the 17th (local time) by asset management firm Mercer and the global investment professional association CFA, South Korea's pension system scored 51.2 out of 100 points.

The overall ranking was 42nd, following Indonesia which scored 51.8. Countries with pension systems rated lower than South Korea included Thailand (46.4), Turkey (46.3), India (45.9), the Philippines (45.2), and Argentina (42.3), totaling five countries.

The highest-rated country was the Netherlands (85.0), while the United States (63.0) and Japan (56.3) ranked 22nd and 30th respectively.

Mercer and the CFA Association evaluated each country's pension system by dividing it into three categories: adequacy, sustainability, and governance, then weighted and combined the scores to determine the rankings.

South Korea ranked last among the 47 countries in the adequacy category, which assesses pension benefits, government support, and asset growth, with a score of 39.0. It ranked 27th in sustainability and 34th in governance.

[Image source=Yonhap News]

Mercer assigned South Korea's pension system a grade of C. The C grade means "generally useful but with risks and weaknesses, and if these are not addressed, the effectiveness and long-term sustainability of the pension system are questionable."

Among the 47 countries, 15 including South Korea, Saudi Arabia, Brazil, China, Taiwan, Japan, and Botswana received a C grade.