New Zealand has moved from 17th to 14th in the world on the Mercer CFA Institute Global Pension Index. The index evaluates global retirement income systems based on adequacy, sustainability, and integrity. In the 2024 report, notable shifts occurred for both New Zealand and the United Kingdom.
New Zealand’s improvement driven by its increasing integrity
In 2024, New Zealand’s retirement system was ranked 14th out of 48, with an overall score of 68.7 (out of 100), maintaining its B grade from the previous year. This stability underscores the system’s solid foundation. New Zealand’s highest score was achieved in integrity where it ranked higher than the UK with 80.2 score.
However, a decline from 25th to 28th in the Adequacy sub-index highlights the need to boost confidence and participation in KiwiSaver, especially amid market volatility and global uncertainties. Mercer considered that enhancing engagement is crucial for improving household savings and ensuring a more sustainable retirement system.
The United Kingdom falls out of the top ten (just)
Conversely, the United Kingdom experienced a decline, falling out of the top ten to 11th place in 2024, with a score of 71.6. This drop reflects challenges in adequacy and sustainability within the UK’s retirement income system. The decline underscores the need for reforms to enhance the system’s effectiveness and ensure better retirement outcomes for UK citizens.
NZ’s integrity ranking overtakes the UK’s – as the regulator protects savers
Past questions around the robustness of New Zealand’s pension system have been addressed as KiwiSaver has grown. As KiwiSaver continues to grow in New Zealand we expect the country to further move up the rankings.
New Zealand has flourished as a destination for UK pensions to be transferred to and people are taking comfort in the strong regulatory environment. To find out more talk to one of our experts.
