CPF will get an general A grade from Mercer’s ranking of 52 international pension techniques
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When the US consulting firm Mercer revealed the primary version of its World Pension Index 17 years in the past, Singapore’s Central Provident Fund obtained only a C on its grading scale. Now, in 2025, its ascent by way of the ranks is full, because it has lastly been awarded the very best A grade.
Singapore joins 4 different international locations: the Netherlands, Iceland, Denmark and Israel — which have been awarded the identical distinction among the many 52 techniques masking 65 per cent of the worldwide inhabitants that Mercer evaluates every year.
Curiously, the Lion Metropolis ranks above identified welfare states like Sweden, Norway or Finland, in addition to Switzerland or Hong Kong, and main developed economies in Canada, France or Germany — to not point out the USA which, at simply C+, is on par with Malaysia.

The principle grade consists of scores calculated throughout three sub-indices: Adequacy, Sustainability and Integrity.
The primary grades the techniques on their outcomes for the insured: advantages it offers, charges of house possession, financial savings, development and their design. The second focuses on the extent of the protection, belongings underneath administration, public expenditures and authorities debt which influences the federal government’s skill to offer outdated age assist. Lastly, Integrity covers regulatory guidelines and protections, working prices and communication with the members.
Singapore obtained B+ for the primary two and A for the final one, so there may be nonetheless slightly bit it might enhance by, though there are solely two triple-A rated techniques: within the Netherlands and Iceland.


What’s extra, Singaporeans might not respect the suggestions supplied by Mercer on how the nation may obtain greater marks. Among the many recommendations embody opening the system as much as nonresidents, and rising the age at which CPF members can entry their financial savings by 2030. As we communicate nonetheless, retirement age in Singapore is already being nudged up to 65, and re-employment age boosted to 70, in accordance with the NTUC.
We’ve got to keep in mind that that is simply an index devised by a non-public firm which grades every nation by its arbitrary requirements, which regularly may not be suitable with societies that deviate from the established norm, comparable to Singapore’s – a tiny, extremely migrant-dependent city-state, which can’t provide pensions to all international staff.
However, CPF’s ascent up the ranks reveals that the federal government is listening to constructive recommendation, even when it comes from overseas. By filling some gaps, providing assist for older generations or creating schemes like CPF Life, it has enormously improved protection and adequacy of the pensions, whereas the system is absolutely backed by the nation’s reserves.
In a world the place most developed nations are involved about future sustainability of their pension schemes, thought of to be Ponzi schemes depending on contributions of vastly extra quite a few staff to offer for a comparatively small inhabitants of pensioners, Singapore stands out for the accountability and self-sustainability constructed into CPF from day one.
As these issues start to materialise within the coming years, it’s possible that its place in any international rating is just going to get stronger with time, serving for example to comply with.
Featured picture credit score: Shutterstock
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