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FIAP > Boletín – Recientes > Pension Notes No. 40 – Melbourne Mercer Global Pension Index 2019: Lessons for Latin America / December 2019

Pension Notes No. 40 – Melbourne Mercer Global Pension Index 2019: Lessons for Latin America / December 2019

7 February, 2020
  • The Melbourne Mercer Global Pension Index, which assesses pension systems in 37 countries, shows that Latin America has significant challenges in this area. Chile ranks 10th among the best countries worldwide, with 68.7 points out of a possible 100; Peru ranks 19th with 58.5 points; Colombia 20th with 58.4 points; Brazil 23rd with 55.9 points; Mexico 33rd with 45.3 points and Argentina ranks second-last (36th), with only 39.5 points.
  • Chile has good Sustainability and Integrity indicators. However, its Adequacy indicator is slightly below the average of the countries analyzed, showing that there is an opportunity for improvement in that indicator, which, among other things, refers to benefit-income levels.
  • Peru, with an overall index slightly below the country average, appears with an above-average assessment in the Sustainability indicator, but a low Integrity assessment, partly due to the low coverage of its pension system, and a slightly below-average assessment in Adequacy.
  • Colombia and Brazil have above-average Adequacy and Integrity indicators and a low Sustainability indicator, particularly in the case of Brazil, as a result of the strong deficit in its PAYGO system.
  • Mexico has a good Sustainability indicator assessment, but significantly under-average assessments in the Adequacy and Integrity indicators, due to the level of benefits it can provide at a contribution rate of only 6.5% and the low coverage of its pension system.
  • Finally, Argentina ranks second-last in the Mercer index, because its three sub-indices are significantly below the average of the countries assessed, indicating that its pension system is in need of profound reform.

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