France ranks 19th in a ranking of the world's best pension systems

France ranks 19th in a ranking of the world's best pension systems, which includes 48 countries. The Netherlands tops the list, followed by Iceland and Denmark.
 

France is moving up in the ranking of the best pension systems compiled by the consulting firm Mercer. However, this is not yet enough to make it into the top 10. To compile this ranking, the pension systems of 48 countries were analyzed based on three main criteria: retirees’ standard of living, the system’s financial sustainability, and integrity. This last factor aims to assess the quality of information provided to retirees and the working population, as well as transparency. Mercer states that it relied on a total of 50 indicators.
 

The Netherlands tops the rankings with an A grade and an overall score of 85, scoring above 80 on all three criteria. Next come Iceland, Denmark, and Israel, the three other countries to receive an A grade. Singapore, Australia, Finland, Norway, Chile, and Sweden round out the top 10 with grades of B or B+.
 

France Weighed Down by the Financial Sustainability of Its Pension System
And what about France? It ranks 19th, which is an improvement over 2023, when it was in 25th place in this ranking. It received a B grade with an overall index of 68. It stands out in particular with a strong 85 for the criterion of retirees’ standard of living. However, its score remains dragged down by the financial sustainability of its system, where it scores only a 43.
 

“The recent pension reform has indeed improved the sustainability of the pay-as-you-go system, given the extension of the contribution period,” admits Manon Carlési, a manager at Mercer, in a press release. But this is not enough to offset demographic trends, with the ratio of contributors to retirees continuing to decline and low employment rates among older workers, according to the report.