Israel Ranks Fifth Globally in the 2026 Mercer CFA Pension Index
Israel ranked fifth globally in the 2026 Mercer CFA Institute Global Pension Index with an A grade and a score of 81.9, outperforming Australia.
Israel's pension system ranked fifth globally in the 2026 Mercer CFA Institute Global Pension Index, earning an A grade with a total score of 81.9. This represents an improvement from last year's score of 80.3, placing Israel just behind Singapore (82.0) and ahead of Australia (80.6).
The Netherlands claimed the top spot for the fourth consecutive year, achieving a score of 85.8 out of 100. The comprehensive index evaluates 55 retirement systems worldwide, representing 66% of the global population, based on three core sub-indices: adequacy, sustainability, and integrity.
Sub-Index Performance and Global Standards
Israel demonstrated notable progress across specific metrics:
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Adequacy (40% weight): Israel scored 79.4, up from 75.6 last year.
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Sustainability (35% weight): Israel recorded 82.4, compared to 83.2 previously.
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Integrity (25% weight): Israel reached 85.1, rising from 83.6 a year ago.
Israel is one of only six systems globally to achieve an A grade—signifying a score above 80. The elite group includes the Netherlands, Denmark, Iceland, Singapore, and Israel, with Australia joining them for the first time in 2026.
"Pension systems are under real pressure," said Christine Mahoney, global leader at Mercer's Wealth business.
Demographic Pressures and International Reforms
While top-tier systems excel, the report highlights long-term vulnerabilities in several European nations, such as Austria, Spain, and Germany. Policymakers worldwide are actively pursuing reforms. For instance, Germany's Bundesbank president proposed linking the retirement age to life expectancy starting in 2031, while the United Kingdom slipped to 14th place amid mounting household debt and coverage gaps.
