The Mercer and CFA Institute Global Pension Index 2025compares 52 pension systems that together cover about 65% of the world’s population.
The Index serves as a global benchmark assessing how effectively countries provide retirement security. It evaluates systems across three key dimensions:
• Adequacy (40%) – how well pensions support a decent standard of living;
• Sustainability (35%) – the system’s ability to withstand demographic and economic pressure;
• Integrity (25%) – transparency, governance, and trust in the system.
The global average score reached 64.5 out of 100, and notably, there are no longer any E-grade systems (those below 35 points) – a sign that pension governance standards are improving worldwide.
Five countries achieved the top A grade: the Netherlands, Iceland, Denmark, Singapore, and Israel – all known for strong savings, long-term investment strategies, and reliable regulation.
Close behind are Sweden, Australia, and Chile (B+), which have robust private schemes and diversified structures.
Four countries joined the Index for the first time – Kuwait, Namibia, Oman, and Panama. Kuwait made a strong debut with a B rating, while the others scored between C and C+.
Kazakhstan maintained its B rating, improving its total score to 65 points (up from 64 in 2024).
Breakdown by sub-index:
• Adequacy: 47.0
• Sustainability: 74.2
• Integrity: 81.1
This mix shows a system with strong governance and trust, yet limited benefit adequacy.
The Unified Accumulative Pension Fund (UAPF) ensures effective oversight and transparency, but the replacement rate – the share of income retirees receive compared to their working years – remains modest.
Key recommendations for Kazakhstan:
• Expand pension coverage for self-employed and informal workers;
• Encourage voluntary and corporate pension schemes;
• Gradually raise the retirement age in line with longer life expectancy;
• Reduce early withdrawals from savings;
• Narrow gender and participation gaps in pension contributions.
Across OECD countries, pension assets grew by 10% in 2024, reaching a record USD 63 trillion – more than triple their 2003 level.
The rise reflects not only strong markets but also policies expanding coverage and participation.
At the same time, the world is moving from defined benefit (DB)to defined contribution (DC) systems, shifting more responsibility for retirement income from governments to individuals.
A key new chapter of the report examines how governments influence private pension fund investments.
As global uncertainty grows and pension assets expand, many governments are pushing funds to invest more in national priorities such as infrastructure, green energy, and innovation.
Mercer and CFA Institute proposed eight guiding principles to balance participants’ interests with national development goals:
1. Retirement first. Pension funds exist to provide income in old age.
2. Fiduciary integrity. Trustees must act solely in participants’ best interests.
3. Strong governance. Systems should ensure transparency and risk diversification.
4. Full market access. Pension funds should have access to a wide range of assets.
5. Incentives, not mandates. Governments should encourage, not force, investments into specific sectors.
6. Collaborative scale. Funds and governments can co-invest in major projects like PPPs.
7. Transparency over restrictions. Disclosure of results is better than strict caps or fee limits.
8. Macro awareness. When pension assets reach around 50% of GDP, governments must understand their impact on the economy.
These principles are especially relevant for Kazakhstan, where pension assets are approaching half of GDP, making investment allocation a key policy issue.
According to the report, a strong pension system is not only a social necessity but also a pillar of macroeconomic stability.
Well-governed pensions ease fiscal pressure, attract investors, and create long-term domestic capital.
For Kazakhstan, this means the focus must shift from short-term returns to broader inclusion and long-term growth.
Kazakhstan’s B rating places it among countries like Canada, Switzerland, and Saudi Arabia, with comparable stability and governance.
Its integrity score of 81 highlights strong oversight and transparency, but the adequacy score of 47 signals room for reform.
The next step is to better connect pension policy with labor market dynamics, investment strategy, and sustainable development goals.
Kazakhstan’s pension system demonstrates growing maturity – transparent, well-regulated, and stable. The next challenge is to make it not only reliable but also adequate for future retirees. A sustainable pension system reflects the strength of a nation – one that can ensure security today and confidence in tomorrow.
