India's pension system ranks 40th in the Global Pension Index

India ranked 40th in the 2021 Mercer CFS Global Pension Index survey, a study of 43 retirement income systems across the globe. India had an overall index value of 43.3 among the countries analysed. However, it was less than 45.7 recorded in 2020 primarily due to a fall in the net replacement rates. The pension index measures each retirement system through three sub-indices, sustainability, adequacy and integrity, where India scored 33.5, 41.8 and 61, respectively. The Mercer survey report has also recommended ways to improve the overall index value for the Indian pension system. These include introducing a minimum level of support for the poorest aged individuals, increasing coverage of pension arrangements for the unorganised working class, introducing a minimum access age so that it is clear that benefits are preserved for retirement purposes and improving the regulatory requirements for the private pension system.