About Global Pension Index 2010

In 2009, the Australian Centre for Financial Studies proudly released the Melbourne Mercer Global Pension Index.

The Global Pension Index compares pension and superannuation systems and in 2009 it was conducted across 11 countries and extended to 14 countries in 2010.  The study highlights the merits of public and private systems, and their capacity to meet the long-term retirement needs of each country’s population.

Acknowledging that the differences in each country will make the Global Pension Index controversial, the countries have been chosen to provide a robust comparative sample of well established and emerging systems.

The countries included: Australia, Brazil, Canada, Chile, China, France, Germany, Japan, The Netherlands, Singapore, Sweden, Switzerland, The United Kingdom and The United State of America.

The Global Pension Index is constructed from three sub-indices: benefits, sustainability and integrity.  The data is drawn primarily from OECD and other official sources, and is supplemented by in-country data collected and validated by an international network of Mercer pension specialists.

ACFS has brought together a group of senior industry and academic experts to oversee the study.  Input was also sought from the World Bank, the OECD and the International Centre for Pension Management at Roman University in Canada.

The Global Pension Index is expected to stimulate debate and research activity among policy makers, regulators and the funds management community globally.

The Australian Centre for Financial Studies (ACFS) is a not-for-profit consortium of Monash University, RMIT University, the University of Melbourne and Finsia (Financial Services Institute of Australasia) which was established in 2005 with seed funding from the Victorian Government. Funding for ACFS is also derived from corporate sponsorship and through research partnerships such as the one with Mercer which has led to this report.

ACFS specialises in leading edge finance and investment research, aiming to boost the global credentials of Australia’s finance industry, bridge the gap between research and industry, and support Australia as an international centre for finance practice, research and education.  ACFS facilitates industry-relevant and rigorous research and consulting, thought leadership and independent commentary.  Drawing on expertise from academia, industry and government, the Centre promotes excellence in financial services.

As part of its role in the project, ACFS has convened an expert reference group to ensure that the final Index represents an independent and unbiased view. Many thanks to the members of the reference group:

• Syd Bone, Chairman, Australian Centre for Financial Studies;
• Prof Kevin Davis, University of Melbourne and Research Director ACFS;
• Jeremy Duffield, Managing Director, Vanguard Investments Australia;
• Dr Vince FitzGerald, Chairman, Allen Consulting;
• Prof Richard Heaney, RMIT University; and
• Ian Silk, Chief Executive, AustralianSuper.

Our thanks to Dr David Knox and Adam Solomon of Mercer, who have produced an excellent outcome and who have been a pleasure to deal with throughout the project. Thanks also to the Department of Innovation, Industry and Regional Development for supporting the study.

Professor Deborah Ralston
Director
Australian Centre for Financial Studies