Saudi Arabia ranks 26th on Mercer Global Pension Index 2021

The Kingdom of Saudi Arabia's flag

Saudi Arabia registered consistent results on the Mercer CFA Institute Global Pensions Index for 2021 for the fourth successive year, ranking 26th on the index.

The Kingdom scored 58.1 points on the overall index, compared to 57.5 points last year. It is the only Arab country included in the index. The index uses a weighted average of the sub-indices of adequacy, sustainability and integrity. The Kingdom showed positive results in all of these areas.

The Kingdom scored 61.7 points on the adequacy index due to the high percentage of pension replacement and increased net household savings. It also scored 50.9 points on the sustainability index, thanks to the mandatory contributions allocated to retirement benefits.

In addition, the Kingdom recorded the highest score of 62.5 on the integrity index due to the strong governance structure in relation to the pension system.

Globally, Iceland ranked first, followed by the Netherlands in second place, while the US took the ninth rank.

The Mercer CFA Institute Global Pension Index compares 43 pension income systems worldwide, covering two-thirds, or 65% of the world's population.