European pension systems occupied the top three spots in a global ranking released Oct. 20, but Spain and France scored much higher for the income they provide than for long-term sustainability.
The 2026 Marsh CFA Institute Global Pension Index rated the Netherlands at 85.8 points, Denmark at 84.1 and Iceland at 84.0. All three received an A grade. Israel and Australia also earned A grades, as did Singapore, which ranked fourth with 82.0.
Marsh and CFA Institute assessed 55 systems covering 66% of the world's population. Adequacy accounts for 40% of each overall score, sustainability 35% and integrity 25%. The index's authors caution that small gaps between overall scores do not establish that one system is better than another.
Spain's adequacy score of 83.0 contrasted with 33.0 for sustainability. France scored 85.0 and 49.3 on the same measures. Italy's sustainability score was 27.0, while Austria's was 23.9. The scores assess retirement systems; they do not predict benefit cuts.
Spain's overall result fell to 63.3 from 63.8 in 2025. The index's country assessment tied most of the decline to higher pension spending relative to gross domestic product and weaker average real economic growth over seven years. It also noted limited participation in voluntary workplace and personal plans, despite strong support from the public pension.
The European Commission said in September that longer lives, lower birth rates and changing work patterns were straining pension arrangements. It warned that failing to address those pressures could reduce retirement incomes and make the burden on public budgets harder to manage. About 20% of Europeans participate in occupational pension schemes, while 18% hold personal pension products. The commission is promoting supplementary savings and automatic enrollment alongside public pensions.
The top-ranked Netherlands is changing its workplace system, too. Entitlements will reflect contributions and investment results more directly, and pension amounts will no longer be guaranteed at a fixed level. De Nederlandsche Bank says payments will continue for life, with members sharing the cost when people live longer than expected. Dutch pension funds must meet the new rules by Jan. 1, 2028.
