The latest 2017 Melbourne Mercer Global Pensions Index (MMGPI) has ranked Ireland 12th out of 30 countries and awarded an overall B rating. 
 
The Irish pension system achieved high scores for both the adequacy of the expected benefits and the governance standards applied. However, Ireland continues to lag in 20th place when it comes to the issue of providing sustainable income for people in retirement. 

The results indicate that action is required to improve the sustainability of Ireland's pension system, in order to protect Ireland’s ageing population and to combat the negative impact of low levels of occupational pension coverage. 

Now measuring 30 countries and covering 60% of the world’s population, this year’s ninth edition of the Melbourne Mercer Global Pension Index urges countries with unsustainable pension systems to take action now, rather than risk the need to take even more drastic action in the future.

This year’s Index reveals that Denmark, in its sixth year running, has retained the top position with an overall score of 78.9, ahead of the Netherlands and Australia at 78.8 and 77.1 respectively.
 
Ireland ranked 12th out of 30 countries in this year’s index compared to 10th position out of 27 countries in 2016. Ireland’s overall rating improved from a C+ to a B, primarily due to the inclusion of a real economic growth indicator in the sustainability sub-index for 2017. Given recent and projected strong economic performance, this new indicator also contributed to Ireland being raised from an E to a D on the sustainability sub-index.  

An Taoiseach, Leo Varadkar, recently reaffirmed his strong commitment to the introduction of a universal savings scheme aimed at increasing pension coverage amongst private sector workers. He noted that a five-year roadmap for pension reform is expected before the end of the year with first payments being made to these new individually held funds in early 2021.  Mercer welcomes this commitment and looks forward to hearing further details of the scheme, in particular the minimum contribution rates, eligibility criteria and tax relief arrangements.

Senior DC Consultant at Mercer in Ireland, Peter Burke said, "The results from the 2017 Melbourne Mercer Global Pension Index indicate that the time is right to develop a clear roadmap and timeline for the introduction of an auto-enrolment pension system to cover all employees. As we are living longer and spending more time in retirement, this will help to ensure that the Irish pensions system can support the population in achieving adequately funded retirements." 

Source: www.businessworld.ie