US pension system holds steady as global peers advance, Mercer index shows

The US has held its ground in the 2025 Mercer CFA Institute Global Pension Index, posting a modest gain in overall performance while remaining outside the top tier of global retirement systems.

This year’s Index assigned the US an overall C+ grade with a score of 61.1, up slightly from 60.4 in 2024. Sub-index results reflected steady fundamentals: adequacy at 64.1, sustainability at 59.9, and integrity at 58.0.

However, the findings place the US in the middle of the global rankings, below Canada, the UK and Australia, but ahead of emerging systems such as Brazil and Poland.

According to Mercer, the gradual improvement stems largely from stronger economic data and continued participation in employer-based retirement plans. The report notes that pension assets in OECD countries rose by 10% in 2024, reaching $63.1 trillion, marking “a return to the long-term upward trend in global retirement savings.”

The US framework remains a multi-pillar system built around Social Security, workplace savings plans, and individual accounts. But the Index again flagged several weaknesses that threaten long-term adequacy, particularly among lower-income and nontraditional workers.

Expanding access to retirement plans and improving contribution rates are recurring themes in Mercer’s recommendations and the report urges policymakers to focus on reforms that increase coverage, reduce early withdrawals, and support higher savings.

For US policymakers, the sustainability score highlights a growing tension between demographic realities and fiscal pressure on Social Security.

With life expectancy rising and fertility rates falling, the balance between public benefits and private savings remains fragile. Mercer emphasizes that systems which “increase the state pension age and promote higher labor force participation at older ages” are better positioned to weather long-term costs.

Investment governance also plays a growing role in system integrity and the report notes that many governments are weighing whether pension capital should be directed toward national priorities, but it stresses that “the primary purpose of a pension fund is to provide retirement income to the fund’s participants and their dependents.”

As the Index concludes, no country’s system is immune from demographic and economic change. For the United States, maintaining retirement security will require coordinated policy, consistent savings habits, and a continued commitment to fiduciary integrity.