The pension systems of Saudi Arabia and the UAE have enjoyed an improved score in the annual Mercer CFA Institute Global Pension Index (MCGPI).
The two countries ranked 27th and 25th, respectively, out of 44 retirement systems worldwide.
The MCPGI benchmarks countries’ pension systems across three key areas – adequacy, integrity and sustainability.
The UAE saw its overall index value rise from 59.6 to 61.8 over the last year while its rating improved from C to C+.
The report cited the UAE’s high labour force participation rate in pension schemes and a robust governance structure around the national pension system as the reasons for the upgrade.
However, the report also called for more investment in education and promoting a savings culture in the UAE.
Meanwhile, Saudi Arabia’s score improved from 58.1 to 59.2, helped by a significant increase in the sustainability of its national pension scheme. A key factor is a growth in the female employment market which has nearly doubled over the last five years.
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