With one of the world’s largest funded pension systems, the Netherlands has retained its reputation as the best system in a key international ranking – though researchers also warn about weakening sustainability of systems.
In the Marsh CFA Institute Global Pension Index 2026 survey released today, non-European national pension systems now make up only half of those gaining the highest ‘A’ grade, with the trend seen over the last few years for systems outside Europe to join the traditionally-lauded Danish and Dutch systems in the top spots continuing.
The organisations behind the index said the report – renamed this year as Mercer uses Marsh as a unified brand – said this year’s study showed that the Netherlands, Denmark, Iceland, Singapore, Israel, and Australia had the best systems, with each receiving an ‘A’ grade in 2026.
“Although the Netherlands is currently undertaking significant pension reform, moving from a mostly collective defined benefit (DB) structure to a more individual defined contribution (DC) approach, its system continues to receive the highest Index score,” they said.
The Netherlands received the highest overall score in the report, which assesses national pension systems on their adequacy, sustainability and integrity, of 85.8 – up from its 2025 number one score of 85.4.
The Dutch system increased its individual scores for adequacy and integrity between the years, although its individual sustainability score dipped slightly in 2026.
Denmark replaced Iceland in the number two spot in 2026 with a score of 84.1, up from its 2025 score of 82.3, which had put it in third place in 2025.
Iceland came third in this year’s study with an 84.0 overall score – unchanged from the country’s score in 2025.
In fourth, fifth and sixth place are Singapore with 82.0; Israel with 81.9, and Australia entering the top tier with an ‘A’ score for the first time – which requires an 80-plus score overall – with 80.6.
Commenting on the report, Marsh and the CFA Institute said strong adequacy scores masked a sustainability challenge.
“The 2026 index awards ‘A’ grades to six systems overall, with more systems achieving ‘A’ grades for adequacy and integrity than for sustainability.”
“This imbalance highlights a central tension: Systems that are delivering good outcomes for retirees today may not be able to sustain those levels for future generations,” they added.
Intergenerational equity was an emerging as a pressure point, according to the report.
“As the proportion of the population in retirement rises relative to those of working age, questions of intergenerational fairness, such as who funds generous state pension commitments, and for how long are becoming increasingly prominent,” it noted.
