Above average, but just.
This is how the U.S. retirement system ranks in the latest Mercer CFA Institute Global Pension Index, which examines systems in countries across the world.
The U.S. system, which is funded mostly by individual retirement accounts (IRA), 401(k)s and Social Security, received an overall grade of C+, according to the report released Tuesday. It scored 63 out of 100, down from last year’s 63.9 and just squeaking in above the 62.9 average of all countries. U.S. scores declined in every subcategory – adequacy, sustainability and integrity – that make up the overall score. But the largest drag was from integrity.
Integrity covers regulation and governance and protection, communication and reasonable costs for individuals in the system. Without integrity, people would lose confidence in the retirement safety net, the report said. The U.S. integrity score dropped to 59.5 from 61.7 last year, sharply below the 71.6 average and putting the nation at 41 out of 47 countries examined.
“It is critical that the community has confidence in the ability of private-sector pension providers to deliver retirement benefits over many years into the future,” it said.
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Where does the US rank in retirement?
The U.S. retirement system ranked 22 out of 47 countries globally, the report said.
What country has the best retirement?
The top three countries, according to the research, are:
- Netherlands…
