The Adequacy Sub-Index 2011

The adequacy sub-index is determined by considering the benefits provided to both the poor and the median-income earner as well as several design features which enhance the efficacy of the overall retirement income system. The net household saving rate and home ownership rate are also included as non-pension savings can represent an important source of financial security during retirement.

The countries with the highest value for the adequacy sub-index are the Netherlands (75.9) and Canada (74.1), with India (37.3) and Singapore (41.9) having the lowest values. Whilst several indicators influence these scores, the level of the minimum pension (expressed as a percentage of the average wage) and the net replacement rate provided for a median-income earner are the most important.

To report the fill report on the Adequacy Sub-Index refer to page 21 of the 2011 Melbourne Mercer Global Pension Index.