The Netherlands has claimed the top spot on the Marsh CFA Institute Global Pension Index 2026, marking its fourth year in a row as the number one pension system.

Its score rose by 0.1 points year-on-year to 85.8, scoring the best mark for adequacy (87.7) while also posting good numbers for integrity (87.2) and sustainability (82.6).

The index noted that while the Netherlands is currently undergoing significant pension reform, its system continued to receive the highest index score, combining a near-universal state pension with broad occupational pensions and voluntary private saving.

“The transition from defined benefit to defined contribution pensions isn't about abandoning what works; it's about evolving those strengths to better serve people, in an increasingly dynamic labour market,” said March principal, investments and retirement, Marc Heemskerk.

Denmark rose one place to second, with its score rising by 1.8 points to 84.1, leapfrogging Iceland which fell to third place as its score remained at 84.0.

The other countries to score an ‘A’ rating of more than 80 points were Singapore (82.0), Israel (81.9), and Australia (80.6).

Denmark scored highest for sustainability (84.8), while Finland came out on top in the integrity category (90.5).

Sweden, Finland, and Norway came in eighth, ninth, and 10th respectively, all receiving a B+ rating.

Switzerland and the UK were the other two European countries in the top 15, ranking in 11th and 14th place respectively.

The index compared 55 retirement income systems and covered 66 per cent of the world’s population.

The worst-ranking European country included in the index was Austria, which received a C grade and sat in 44th place.

Marsh said the 2026 index highlighted the need for clear objectives for pension systems, prioritising funding of future retirement obligations and more flexible pension products and retirement age structures to address demographic change.

It argued that traditional retirement ages of 60 or 65 were becoming increasingly outdated as people live longer, healthier lives and the distinction between work and retirement becomes less defined.

“Pension systems are under real strain,” commented Marsh global defined benefit/defined contribution leader, Christine Mahoney.

“Governments that clarify their pension objectives, strengthen funding, and build flexibility into retirement design will be far better positioned to deliver dignified, secure retirements for the generations ahead.”

CFA Institute Research and Policy Center managing director, Mona Naqvi, added: “Retirement systems differ across markets, but all face the same long-term challenge: delivering reliable income as demographics shift and markets change.

“No single policy or investment decision can achieve that. It takes sound system design and governance, alongside careful oversight of investments by those with a fiduciary duty to savers and retirees.

“The test is whether those decisions work together to serve people throughout retirement, and remain sound for the generations that follow.”

---