The Norwegian index value remains unchanged from 2019 to 2020 despite small movements in each of the three sub-indexes, which are used to calculate the overall value in the annual pension systems comparison.
Interesting inputs and discussion points in the Norwegian index include the integrity score, the level of Norwegian household savings debt levels and the level of mandatory contributions, according to the report.
Denmark and Netherland are considered to have the best systems with the highest combined score as first class retirement income systems that deliver good benefits, are sustainable and have a high level of integrity.
Covid effects for decades to come
The widespread economic impact of COVID-19 is heightening the financial pressures which retirees face, both now and in the future. Coupled with increasing life expectancies and the rising pressure on public resources to support the health and welfare of ageing populations, COVID-19 is exacerbating retirement insecurity.
"The impact of COVID-19 is much broader than solely the health implications; there are long term economic effects impacting industries, interest rates, investment returns and community confidence in the future. As a result, the provision of adequate and sustainable retirement incomes over the longer term has also changed," it says in the report.
Earlier retirement due to fewer employment opportunities or longer term personal consequences from the pandemic, may also lead to reduced growth in pension plan assets and increased insurance premiums.
About the Mercer CFA Institute Global Pension Index
Formerly known as the Melbourne Mercer Global Pension Index, the Global Pension Index benchmarks retirement income systems around the world highlighting some shortcomings in each system and suggests possible areas of reform that would provide more adequate and sustainable retirement benefits.
The Global Pension Index is a collaborative research project sponsored by CFA Institute, the global association of investment professionals, in collaboration with the Monash Centre for Financial Studies (MCFS), and Mercer, a global leader in redefining the world of work and reshaping retirement and investment outcomes.
The Global Pension Index uses the weighted average of the sub-indices of adequacy, sustainability and integrity to measure each retirement system against more than 50 indicators. The 2020 Global Pension Index introduces new questions relating to public expenditure on pensions, ESG (environmental, social and governance) investing and support for caregivers.