S’PORE’S CPF RANKED THE BEST RETIREMENT PENSION IN ASIA, 7TH BEST IN THE WORLD

In an ever-evolving global landscape, Singapore’s Central Provident Fund (CPF) system has once again proved its mettle by maintaining its top position in Asia, according to the 2023 Mercer CFA Institute Global Pension Plan.

Released on Tuesday, October 17, this ranking places the CPF system at the pinnacle of retirement planning in Asia for the fifteenth year in a row, according to The Straits Times.

The Mercer CFA Institute Global Pension Plan

The Mercer CFA Institute Global Pension Plan released from the collaboration between Mercer, the Monash University Business School and the CFA Institute.

This comprehensive evaluation scrutinizes retirement and pension systems across the globe, considering sustainability, adequacy, and integrity of the systems of different countries.

Singapore’s Remarkable Ascent

Singapore’s CPF system has made a remarkable leap, rising two places from its previous year’s global ranking. Out of the 47 countries and regions evaluated, it now secures the seventh spot. The system’s overall score has climbed to an impressive 76.3, up from the previous year’s 74.1, resulting in a B+ grade.

It was also ranked the best in Asia, in the rankings.

While Singapore shines in Asia, the global landscape sees Northern European nations such as Iceland, the Netherlands, and Denmark retaining their positions as the top three regions with the best retirement and pension systems across the globe.

Asia’s Strong Contenders

For the Asian ranking, Hong Kong and Japan finished in 2nd and 3rd respectively, behind Singapore.

This year’s Global Pension Index saw three new countries being included in the retirement pension evaluation – Botswana, Croatia, and Kazakhstan.

FAQs

1. What is the CPF system in Singapore? The Central Provident Fund (CPF) system in Singapore is a comprehensive social security savings plan that covers retirement, healthcare, and homeownership.
2. How does the CPF system work? Singaporeans and permanent residents contribute a portion of their income to their CPF accounts, which are then used for various purposes, including retirement savings and healthcare expenses.
3. What criteria are considered in the Mercer CFA Institute Global Pension Plan ranking? The plan evaluates retirement and pension systems based on sustainability, adequacy, and integrity, considering the needs of 64% of the world’s population.
4. What are the top three regions with the best retirement and pension systems globally? The Netherlands, Iceland, and Denmark are the top three regions with the best retirement and pension systems.
5. Why is it important to adapt to changing demographics in retirement planning? Adapting to changing demographics is crucial to ensure that retirement systems remain secure and adequate in the face of evolving populations and economic challenges.