2025 Global Pension Index ranks Ireland in 23rd place - Mercer / CFA Institute 

• Index compares 52 retirement income systems, covering 65% of the world’s population.
• Ireland’s retirement income system maintains its B rating but drops from 18th to 23rd position overall.
• Ireland achieves a Grade A on the integrity sub-index with a score of 81.8; a Grade B on the Adequacy sub-index with a score of 72.9 and a Grade C on the Sustainability sub-index with a score of 51.6.
• The Netherlands retains the top spot as the world’s leading retirement income system, followed again by Iceland and Denmark in 2nd and 3rd place respectively.

NEW YORK, October 15, 2025 — Mercer and CFAInstitute, the global association of investment professionals, today released the 17th annual Mercer CFA Institute Global Pension Index (MCGPI).

Ireland’s retirement income system maintains its B grade and ranks in 23^rd place in the latest edition of the Mercer CFA Institute Global Pension Index (MCGPI) which compares 52 retirement income systems globally (an increase from 48 in 2024), covering 65% of the world’s population.  A Grade B describes a system that has a sound structure, with many good features, but has some areas for improvement that differentiate it from an A-grade system.

Ireland’s overall ranking is down from 18^th place in 2024, with the index value decreasing slightly from 68.1 in 2024 to 67.7 in 2025. The reduction is primarily due to updated growth data published by the IMF which stated that the domestic economy is projected to continue growing, albeit at a slower pace in a highly uncertain global environment.

The retirement income systems of the Netherlands, Iceland, Denmark, and Israel retained their A grade in 2025. For the first time, Singapore received an A grade, the only country in Asia to achieve the rating

The Irish system scored ahead of some other European systems such as Spain (63.8) and Portugal (67.6), but behind Netherlands (85.4) Denmark (82.3), Sweden (78.2), Norway (76) and the UK (72.2).  

Ireland’s retirement income system comprises a flat-rate basic social security scheme and a means-tested benefit for those without sufficient social insurance contributions. Voluntary occupational pension schemes and personal pension schemes provide supplementary income in retirement.

The occupational pensions market in Ireland continues to experience a period of rationalisation following the introduction of the IORP II Directive. As a result of increased compliance requirements and regulatory supervision, many plans have consolidated into master trusts. The higher regulatory standards now applicable to all occupational pension plans in Ireland support the continuing high index score for the overall integrity of the Irish system.

Looking forward, Ireland will be introducing an auto enrolment retirement saving system from 1^st January 2026. This represents the most significant change to the Irish occupational pensions landscape in a generation and is expected to materially increase pension coverage across the population. It is anticipated that the integration of auto enrolment into the wider occupational pensions system will support future improvement in the score of the Irish system. This is likely to particularly impact sustainability as increased supplementary pensions coverage will reduce overall reliance on the State pension as the primary, or sole, source of income in retirement. This is a trend which has been seen in other countries where mandatory retirement saving has been introduced. It is important to note that the impact of auto enrolment on adequacy of retirement income will emerge more gradually: not all employees are eligible, and initial mandatory contributions are low (although they are due to increase on a phased basis over a 10-year period). As a result, it may be several years before the full benefits and impact of auto enrolment on the Irish occupational pensions system becomes apparent.

The Global Pensions Index states that the overall index value for the Irish system could potentially be increased by:

• Increasing the level of contributions and assets, whether through employer-sponsored occupational pension schemes or gradually over a 10-year period as proposed in the planned auto-enrolment scheme
• Increasing the labour force participation rate at older ages as life expectancies rise

Commenting on Ireland’s performance in the latest index, Caitriona MacGuinness, DC and Private Wealth Leader for Mercer in Ireland, said: “Ireland’s retirement income system continues to rank well in the Mercer CFA Global Pension Index, mainly due to strong adequacy and integrity scores. The growing popularity of master trusts has supported Ireland’s strong integrity score, due to the professionally run nature of these schemes and the additional regulatory oversight they receive”.

Ms MacGuinness added, “While Ireland ranks below average on the sustainability index, the planned introduction of the auto enrolment retirement savings system from 1^st January 2026, with an estimated 750,000 employees projected to begin saving for retirement for the first time, should improve Ireland’s overall index value in the future. We welcome the introduction of the auto enrolment savings system, recognising the significant impact it will have over the long term as contribution levels increase over time. In time, this new regime should reduce dependence on the State Pension, albeit the impact of this will only really be felt in the long term.”

Long-term sustainability of the State Pension system has also started to be addressed by Government plans to increase PRSI on a phased basis by 0.70% over a five-year period.

Amid rising global uncertainty, the growth and scale of pension fund assets are increasingly prompting governments to look for ways to channel some of this capital into national priorities. This year’s Index explores how government interventions can have unexpected consequences and suggests eight principles for how governments can best balance the interests of private pension plan participants and broader national priorities.

“As people live longer and labour markets shift, governments are facing pressure to adapt pension systems,” commented Christine Mahoney, Mercer’s Global Defined Benefit/Defined Contribution Leader. “However, pension reform is never simple. Assessing possible outcomes is essential, which is why employers, governments, and pension providers should all have a voice in shaping more resilient pension systems.”

Margaret Franklin, CFA, President and CEO, CFA Institute, added: “Regulations and government actions — from tax policies to investment mandates — profoundly shape how pension funds can allocate capital. As some systems look to pension funds to drive investments that are considered in the national interest, the professional investment community must guard against the unintended consequences that may arise when mandates or restrictions distort the system. As the Index makes clear, the central purpose of pensions must remain to secure retirement income, guided by fiduciary duty above all else. Pension systems work best when they balance innovation and national priorities with the enduring responsibility to serve end-investors’ interests.”

Government mandates versus collaboration

Governments worldwide have long played a role in shaping how private pension funds invest, by imposing guidelines to protect retirees or encouraging the pension sector to support domestic economic goals. Countries including the UK, Canada, Australia, and Malaysia have recently encouraged pension funds to support domestic infrastructure and innovation. Meanwhile, in other countries, debates continue around whether pension funds should be forced to consider environmental, social and governance factors instead of focusing solely on financial performance in investment decisions.

“Pension systems with no or limited restrictions tend to perform better in the Index,” commented Tim Jenkins, lead author of the report and Partner at Mercer. “This suggests that instead of imposing mandates, governments can focus on making investment options attractive, promoting transparency and sound governance, and fostering collaboration with the private sector to support sustainable retirement systems and economic growth.”

Retirement income provision improves at a global scale

Countries that achieved Index scores greater than 80 earned an A grade. These countries offer a robust retirement income system that delivers good benefits, is sustainable and has a high level of integrity.

The Index uses the weighted average of the sub-indices of adequacy, sustainability and integrity. For each sub-index, the systems with the highest values were Kuwait for adequacy, Iceland for sustainability and Finland for integrity.

Strikingly, eight retirement income systems have improved their Index grade this year, and no systems have been downgraded. This shows that retirement income provision is improving at a global scale — a critically important outcome as people live longer and birth rates continue to decline.

2025 Mercer CFA Institute Global Pension Index

About the Mercer CFA Institute Global Pension Index (MCGPI)

The MCGPI benchmarks retirement income systems around the world and suggests possible areas of reform that would provide more adequate and sustainable retirement benefits with a high level of integrity. This year, it compares 52 retirement income systems across the globe, including four new countries – Kuwait, Namibia, Oman and Panama - and covers 65% of the world’s population.

The Global Pension Index is a collaborative research project co-sponsored by CFA Institute and Mercer and is supported by the Monash Centre for Financial Studies (MCFS). Find more information about the Mercer CFA Institute Global Pension Index here.

About Mercer

Mercer, a business of Marsh McLennan (NYSE: MMC), is a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit mercer.com, or follow us on LinkedIn and X.   

About CFA Institute

As the global association of investment professionals, CFA Institute sets the standard for professional excellence and credentials. We champion ethical behavior in investment markets and serve as the leading source of learning and research for the investment industry. We believe in fostering an environment where investors’ interests come first, markets function at their best and economies grow. With more than 200,000 charterholders worldwide across 160 markets, CFA Institute has 9 offices and 158 local societies. Find us at www.cfainstitute.org or follow us on LinkedIn . 

About the Monash Centre for Financial Studies (MCFS)

A research centre based within Monash University's Monash Business School, Australia, the MCFS aims to bring academic rigour into researching issues of practical relevance to the financial industry. Additionally, through its engagement programs, it facilitates two-way exchange of knowledge between academics and practitioners. The Centre’s developing research agenda is broad but has a current concentration on issues relevant to the asset management industry, including retirement savings, sustainable finance and technological disruption.

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