With soaring inflation, interest rates, and other economic headwinds all threatening retirement incomes across the globe, public and private pension plans are facing their biggest test in decades.
With this in mind, the Mercer CFA Institute Global Pension Index 2022 has ranked 44 retirement income systems based on their adequacy, sustainability, and integrity.
Read on for the top 30 and find out which countries are best prepared to look after their older populations. All dollar amounts in US dollars, unless otherwise stated.
Peru's system has received a C grade in the index, which means it has some good features but also suffers from a number of serious shortcomings.
According to the index's authors, the South American nation, which offers a means-tested government pension and other public and private schemes, could do more to support the poorest seniors.
The report also recommends that Peru boost sustainability by reducing pre-retirement access to pension assets.
Mexico's C-grade system offers a universal pension for seniors aged 68 and over of around $64 (£58) a month, as well as various means-tested public and voluntary private schemes.
This comprehensive provision has helped it bag a relatively decent score for the report's adequacy factor. However, the system still falls short when it comes to integrity, with the governance requirements on private pensions flagged as being in need of improvement.
The Polish system is made up of a minimum public pension, which amounts to around $250 (£227) per month, and an earnings-related scheme. On top of that, there are mandatory employer-sponsored plans and individual pensions.
While its integrity is robust, the C-graded system scores comparatively poorly for adequacy: there simply aren't enough people of working age with private pensions.
Saudi Arabia's score has increased from last year thanks to increased participation of seniors in the labour market.
The nation has also brought the retirement age of women in the country in line with men at 60.
However, around one-third of employees retire after just 20 or 25 years of work, and maintaining this won't be easy. As such, sustainability, which is earnings-related, is the weakest link in Saudi Arabia's C-graded pension system.
Earning a grade of C+, Spain has a three-pillar system comprising the state pension, which starts at $865 (£784) per month, occupational plans, and private schemes.
However, the majority of seniors rely on government support. While efforts are being made to encourage take-up of individual and employer-operated plans, the sustainability of the system is shaky due to so many being reliant on the state. Spain scores markedly low in this area.
Sustainability is also an issue for the UAE's C+ system, which consists of a minimum state pension and national occupational-based scheme.
This sees employees put in 5% of their salary and employers contribute a further 12.5% to 15%.
Remarkably, workers who have paid into the system for at least 20 years can retire as young as 49. This will almost certainly have to change in the future as the population ages.
Also awarded a C+ rating, the Portuguese pension system echoes that of its neighbour Spain.
Also made up mostly of public provision, it provides occupational and personal plan coverage across the nation, although take-up of these is low.
Like its Spanish counterpart, the Portuguese state is spending big on pensions. It will have to go all-out to get its working population to join private schemes in order to safeguard the system's sustainability.
In Malaysia, the Employee Provident Fund (EPF) covers all private sector employees and non-pensionable public sector workers.
It's not a pension fund per se, with some benefits accessible pre-retirement as and when the need arises.
In terms of adequacy, the C+ graded system could do significantly better, although it does score impressively for integrity.
France's famously lavish retirement income system comprises a minimum state pension currently set at $718 (£650) per month, together with an earnings-related public pension, supplementary scheme for private sector workers, and voluntary work plans.
Sustainability is the C+ graded system's Achilles' heel, and a hike in retirement age might be the bitter medicine required going forward.
Earning itself a C+ grade, Colombia's retirement income system includes a means-tested pension and pay-as-you-go defined benefit plan.
The minimum monthly payout is linked to the minimum wage, which is currently a million pesos or $217 (£196) per month.
The system's sustainability is improving due to more people taking out private plans and, as a result, Colombia has moved several spots up the rankings this year.
Also graded C+, America's retirement income system is made up of the social security system, which provides a maximum monthly benefit of $3,345 (£3k) at full retirement age, along with voluntary occupational and personal plans.
Its weaknesses include a distinct lack of provision for the most hard-up seniors, which eats into the overall system's adequacy score.
The bedrock of Hong Kong's C+ pension system centres around the Mandatory Provident Fund (MPF) System, which requires employers, employees, and freelancers to contribute 5% of their income towards their golden years.
The integrity of the system is excellent; its sustainability, less so. Measures such as raising the retirement age from 65 and increasing senior participation in the workforce will no doubt have to be introduced in the near future.
Belgium has been graded B in this year's index. This means its retirement income system is solid with many good features – although there's certainly still room for improvement in some areas.
A lack of sustainability is the system's real sore point, with relatively low private pension coverage and inflexible plans among the problems that could do with being addressed.
Likewise, Germany's prudently managed pension system is rated highly for integrity and adequacy. However, its low score for sustainability bags it a B grade overall.
It comprises a mandatory earnings-related pay-as-you-go system, and supplementary occupational and personal plans.
It also offers means-tested support for low-income seniors, who can have their pensions topped up to the tune of several hundred euros a month.
Also graded B, Chile's retirement income system is a model for several other countries in the nearby area and is largely well-regarded, particularly due to its mandatory privately managed DC system.
The areas that need work include increasing provision for the most disadvantaged pensioners and improving the pension scheme's sustainability. For instance, women can currently retire at 60, which could be regarded as being too early.
B-graded New Zealand offers a universal public pension known as New Zealand Superannuation (or NZ Super), as well as KiwiSaver, a voluntary contribution retirement scheme.
According to the experts who put together the index, the system's total score could be improved by increasing the level of KiwiSaver contributions, as well as by introducing a carer's pension credit for people who look after children.
At the heart of the Irish retirement income system is the flat-rate basic social security pension scheme, which pays out around $1,063 (£959) a month. This is supplemented by voluntary occupational and personal plans.
Graded B, the system has definite room for improvement, with additional participation in employer-based schemes among the report's suggested recommendations.
Yet another B-graded nation is Canada. The country's retirement income system includes a universal flat-rate pension that's bumped up by a means-tested supplement, as well as a national earnings-related scheme that provides up to $906 (£877) a month.
These are further supported by occupational and individual plans, though an increase in uptake would be desirable and could very well improve the overall score and grade.
Uruguay has leapt up the rankings this year, climbing from position 20 to 12.
Boasting Latin America's top retirement income system, which consists of a means-tested state pension and compulsory private schemes, it's little wonder that it fares so well.
That said, the B-graded system still scores relatively low for sustainability and Uruguay has been advised to increase its state pension age in line with increasing life expectancies.
Graded B, the Swiss system offers the usual three-pillar arrangement made up of a state pension, occupational schemes, and private plans.
Retirees receive a minimum of $1,200 (£1k) a month from the state, with the maximum figure available sitting at around $2,400 (£2.2k).
The affluent nation could improve its retirement income system by raising the state pension age and tightening up governance surrounding private plans.
UK pension funds have been under immense strain this year. Regardless, the British retirement income system, which comprises a basic State Pension – currently $212 (£185) a week – supplemented by voluntary occupational and personal plans, remains resilient.
Be that as it may, the B-graded system is neither the most sustainable nor the most generous, with low-income seniors particularly hard done-by.
Singapore's B-graded retirement income system is underpinned by the Central Provident Fund (CPF), to which all working residents contribute.
Silver Support payments up to around $209 (£189) per month are doled out to those who didn't pay in or whose income falls short.
While it works well overall, the system is far from perfect. One potential improvement would be allowing non-residents to participate in the CPF.
Rated B as well, Sweden's retirement income system includes a national earnings-related system, which is transitioning from pay-as-you-go to a funded method.
There's also a means-tested top-up benefit, as well as occupational schemes that enjoy high uptake.
Again, though the system is sound, it could do with some tweaks, including the introduction of tax incentives for individual contributions.
Just about beating its next-door neighbour, Norway's pension system is rated B+.
Financially water-tight, the system, which comprises an earnings-related social security pension and mandatory occupational plans, scores impressively high for its integrity.
Its sustainability could definitely do with some improvement, however, with an increase in minimum payments into the compulsory employer schemes one way this could be achieved.
Another B+ system that requires small amends rather than major overhauls is Australia.
The nation's retirement income set-up is comprehensive, consisting of a means-tested pension of up to $1,400 (£1.2k) per month, private compulsory employer contribution schemes, and an array of other private-sector plans.
Also graded B+, Finland's well-run system is made up of a basic national pension and a range of statutory earnings-related schemes, which all employees and freelancers pay into.
The guaranteed monthly pension is $859 (£775) for all senior citizens of retirement age in Finland, whether they've worked or not, while the average comes in at $1,813 (£1.6k).
Israel's retirement income system outclasses Finland's by a shade, though it still has a B+ grade.
Scoring particularly well for its integrity, the Israeli system comprises a state pension that starts at $447 (£402) a month for a single person of retirement age; this is 67 years for men and between 60 and 65 for women.
There are also various private pension schemes, which require mandatory employer and employee contributions.
Consisting of a public pension scheme that's bolstered by supplementary benefits and compulsory occupational plans, Denmark's retirement income system has been awarded an A in 2022.
This top-class grade recognises an impressive set-up that delivers good benefits, is sustainable, and has a high degree of integrity.
Ticking every box, the Dutch retirement income system also received an A rating.
It comprises a flat-rate public pension, which currently pays up to $1,225 (£1.1k) per month for a single retiree. This is further bolstered by numerous earnings-related occupational pension schemes.
Iceland offers the world's best retirement income system according to the index.
From its basic state pension and supplement to the island nation's mandatory occupational schemes and private personal plans, the A-rated scheme is second to none and will no doubt stand the country's ageing population in very good stead for the future.
But is Iceland the best place to spend your later years? Find out in our guide to the best countries for retirees