In the latest Melbourne Mercer Global Pension Index which ranks 25 countries on the adequacy and integrity of their retirement schemes, Singapore’s CPF was downgraded to a C+ grade from last year’s B grade. The “C+” grade is for a pension system that has “some good features, but also has major risks and/or shortcomings that should be addressed”.
Singapore’s grade places it ahead of five other Asian countries namely China, India, Indonesia, Japan and South Korea which attained a D grade. Denmark’s retirement scheme took the top spot while India was ranked last.
Mercer attributed Singapore’s downgrade to a change in calculation which reduced the level of pension assets as a percentage of Singapore’s economic output, a decrease in the net household savings rate, and lower mortality rates for Singapore.