The Central Provident Fund (CPF) of Singapore has been recognized as the leading pension system in the Asia-Pacific region, achieving an unprecedented A grade in a global index. This milestone marks Singapore as the first in the region to receive such a high grade.
Singapore’s pension system has seen constant improvement since 2009 when it was rated a C, advancing to a B+ in 2023, and finally securing its first-ever A grade in the annual Mercer CFA Institute Global Pension Index. Owing to this breakthrough, Singapore now belongs in the upper echelons of the 2025 ranking alongside the Netherlands, Iceland, Denmark, and Israel.
The Global Pension Index measures 52 retirement income systems worldwide across more than 50 indicators organized into three essential pillars: adequacy, sustainability, and integrity. Adequacy assesses whether a system can provide sufficient income to maintain a decent living standard; sustainability gauges the system’s long-term ability to fulfill future commitments, and integrity measures trust in the system.
Singapore’s pension structure hinges on the CPF, a system that encompasses all employed citizens and permanent residents through compulsory contributions from both workers and employers.
In the latest ranking, Singapore achieved a score of 80.8, the highest in Asia and the fourth highest globally, signifying a considerable upgrade. Notably, no systems experienced a downgrade this year.
The enhancement in Singapore’s position was primarily due to improved outcomes in sustainability and integrity, which balanced a minor decrease in adequacy. Tim Jenkins, the report’s primary author, noted that Singapore authorities have made substantial efforts to boost transparency in recent years. This enables citizens to have a clearer understanding of their anticipated retirement disbursements.
He also pointed out the contribution of Singapore’s economy towards achieving this feat. The long-term economic growth has positively impacted the sustainability metric.
Within the Asia-Pacific region, Australia’s retirement system ranked second with a score of 77.6, followed by Hong Kong at 70.6. Other Southeast Asian countries listed in the ranking included Malaysia (60.6), Vietnam (53.7), Indonesia (51.0), Thailand (50.6) and the Philippines (47.1).
Interestingly, Hong Kong and Malaysia saw improvements in their systems, moving up to B and C+ grades, respectively.
Globally, the Netherlands, Iceland, and Denmark continued to spearhead the index with scores of 85.4, 84.0, and 82.3, respectively.
Questions & Answers
What grade did Singapore’s Central Provident Fund (CPF) achieve in the Global Pension Index?
The CPF achieved an A grade, making it the highest-rated pension system in the Asia-Pacific region.
How does the Global Pension Index assess retirement income systems?
The Global Pension Index measures retirement income systems using more than 50 indicators organized into three pillars: adequacy, sustainability, and integrity.
What other countries ranked high in the Global Pension Index?
Other top-ranking countries include the Netherlands, Iceland, Denmark, and Israel.
