A survey of the world’s top 25 economies has ranked India’s pension system at the bottom. Reflecting the sorry state of the social security system currently in place in a country with more than 1.2 billion people and at least 660 million below the age of 25 years, India scored 43.5 out of a maximum of 100. Denmark, the top-ranked country, had a score of 82.4 on Mercer’s Global Pension Index.
The annual survey pointed out that in the last one year, India — due to some small changes to its pension system — improved its score only marginally from 43.3 in 2013. India’s low rank is because it lags in scores for adequacy (benefits, savings, tax support, etc) and sustainability (coverage, contributions, etc). Although it ranks reasonably higher in terms of integrity (regulation, costs, protection, etc), the report said.
Contributed By Sonia Narula