New Zealand retirement system ranked 17th of 52 entrants in Mercer CFA Institute Global Pension Index 2025 

AUCKLAND, NZ, October 15, 2025 — Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in helping clients realise their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, and CFA Institute, the global association of investment professionals, today released the 17th annual Mercer CFA Institute Global Pension Index (MCGPI).

New Zealand has retained its B grade, ranked this year 17^th of 52 entrants (compared with 14^th of 48 entrants in 2024).

The ranking recognises the underlying strength of NZ Super and KiwiSaver, with index values for New Zealand’s retirement system recording slight increases across the three sub-indices of Adequacy, Sustainability, and Integrity.

New Zealand’s ranking was impacted by the voluntary nature of KiwiSaver, relatively low contribution rates, the disadvantage to primary caregivers’ KiwiSaver balances when taking a break from the workforce, and the fiscal impact of an aging population.

Mercer’s New Zealand CEO, Ms Anna Scott said the need to continue strengthening KiwiSaver participation and increasing the contribution rate is well-understood and it is pleasing that changes are underway.  

“We have seen the Government start to increase KiwiSaver contribution rates, but in our opinion these changes do not go far enough. To improve our retirement system, we need to take a broad approach including refocusing KiwiSaver primarily as a source of retirement income and making the scheme more equitable for people who take time out of the workforce to raise families, as data shows women are reaching retirement age with significantly lower KiwiSaver balances than men.

“Mercer believes it is the right time to have a serious conversation about gradually increasing the age of eligibility for NZ Super, to ensure we future-proof New Zealand’s retirement system.

“However, we appreciate 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. We can develop changes for the long-term, providing policy certainty for the future,” Ms Scott said.

Recommendations for New Zealand to improve its position on the Index and future-proof its retirement systems include:

• Increasing the level, coverage and tax efficiency of KiwiSaver contributions, thereby increasing the level of assets set aside for future retirement benefits
• Raising the state pension age over time
• Raising the level of household savings and reducing the level of household debt
• Introducing a carer’s savings credit or contribution for those caring for young children or elderly relatives that is not contingent on the carer making a contribution
• Focusing on retirement income as the primary purpose for KiwiSaver and work to increase decumulation (draw-down) options.

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. Over the Tasman, Australia retained its B+ rating.

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.

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.”

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.

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.

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.   

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 . 

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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