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The Mercer CFA Institute Global Pension Index 2025 highlights the Netherlands as the leading country for pension systems, maintaining its top spot for yet another year. In contrast, Thailand has been placed 41st among 52 regions, indicating persistent challenges with retirement income adequacy and sustainability. Singapore notably advances to the A category for the first time, showcasing significant improvements.

 

The index evaluates pension systems worldwide based on the adequacy of retirement income, sustainability, and governance integrity. Significantly, Singapore's progress is reflected in its graduation from a C rating in 2009 to an A in 2025, attributed to consistent enhancements in its Central Provident Fund system. Tim Jenkins of Mercer credits this advancement to increased transparency and robust economic growth.

 

Thailand remains in the C group alongside China, Japan, and Vietnam, with slight improvements noted in governance integrity and sustainability. Despite a minor increase in its score from 50.0 to 50.6, Thailand remains below the global average of 64.5, with retirement income adequacy experiencing a decline. Within ASEAN, Thailand lags behind Singapore, Malaysia, Vietnam, and Indonesia in pension system rankings.

 

The report recommends specific measures for Thailand, including expanding occupational pension coverage and strengthening private pension regulations. These recommendations aim to uplift Thailand's pension system score, which includes four components: a public old-age pension, social security for private employees, voluntary employer-established plans, and private savings products.

 

Moreover, the report cautions against the rising tendency of governments to utilize pension fund investments for domestic agendas amidst global uncertainties. Margaret Franklin of the CFA Institute warns of potential unintended consequences when regulations distort investment decisions, essential for maintaining an effective pension system.

 

Key Takeaways

• Netherlands ranks highest; Thailand remains near the bottom at 41st.
• Singapore climbs to an A rating due to improvements in governance.
• Recommendations for Thailand include expanding pension coverage and regulations.

 

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  Adapted by ASEAN Now from The Nation 2025-10-17

 

 

For Thailand this must only include pensions for government workers because for the average Thai the "pension" is discraceful.

When I see many people from Switzerland who have regular state pensions (not private investment yields)  that others in Europe, the USA, UK or Australia could not even dream of,  quite surprised that Netherlands should be the top. 

5 hours ago, dinsdale said:

For Thailand this must only include pensions for government workers because for the average Thai the "pension" is discraceful.

Exactly! I don't think the average Thai even know what a pension is!

5 hours ago, snoop1130 said:

 

The Mercer CFA Institute Global Pension Index 2025 highlights the Netherlands as the leading country for pension systems, maintaining its top spot for yet another year. In contrast, Thailand has been placed 41st among 52 regions, indicating persistent challenges with retirement income adequacy and sustainability. Singapore notably advances to the A category for the first time, showcasing significant improvements.

 

The index evaluates pension systems worldwide based on the adequacy of retirement income, sustainability, and governance integrity. Significantly, Singapore's progress is reflected in its graduation from a C rating in 2009 to an A in 2025, attributed to consistent enhancements in its Central Provident Fund system. Tim Jenkins of Mercer credits this advancement to increased transparency and robust economic growth.

 

Thailand remains in the C group alongside China, Japan, and Vietnam, with slight improvements noted in governance integrity and sustainability. Despite a minor increase in its score from 50.0 to 50.6, Thailand remains below the global average of 64.5, with retirement income adequacy experiencing a decline. Within ASEAN, Thailand lags behind Singapore, Malaysia, Vietnam, and Indonesia in pension system rankings.

 

The report recommends specific measures for Thailand, including expanding occupational pension coverage and strengthening private pension regulations. These recommendations aim to uplift Thailand's pension system score, which includes four components: a public old-age pension, social security for private employees, voluntary employer-established plans, and private savings products.

 

Moreover, the report cautions against the rising tendency of governments to utilize pension fund investments for domestic agendas amidst global uncertainties. Margaret Franklin of the CFA Institute warns of potential unintended consequences when regulations distort investment decisions, essential for maintaining an effective pension system.

 

Key Takeaways

• Netherlands ranks highest; Thailand remains near the bottom at 41st.
• Singapore climbs to an A rating due to improvements in governance.
• Recommendations for Thailand include expanding pension coverage and regulations.

Yeah, Thailand really needs to work on its pension system. Coverage is too limited, and it’s not very sustainable long-term. Singapore’s progress shows how much good policy and transparency can improve things.

For pensions to work you first need people to realise they have to PAY into it in the first place and I don't think Thais have grasped that concept yet.

Countries like Thailand, have strong family ties. Even the poorest will usually rarely be alone. Most will have some farm or home back in some remote village and always have some family tie for support. Thus even with nothing they will always survive and at worse, their patch of land will feed the. 

 

In the west it's often a different story,

 

In the west here and there, it is not rare to see elderly people end up alone, some sadly die alone and their remains are only discoverd months later in some appartment building due to the stench. Consequently such societies need to have retirement pensions to meet the needs of their elderly who can have nothing else to turn to at retirement. No rocket science. Always exceptions to this statement of course. But often..depending of course in which country...the elderly can end up with nobody...

7 hours ago, BayArea said:

Exactly! I don't think the average Thai even know what a pension is!

They know alright. They know it's a few humdred to a few thousand baht a month depending on age.

Surprised Japan is so low. 

13 hours ago, Middle Aged Grouch said:

When I see many people from Switzerland who have regular state pensions (not private investment yields)  that others in Europe, the USA, UK or Australia could not even dream of,  quite surprised that Netherlands should be the top. 

They have that oil fund worth  $340k for every citizen.

$1.9 trillion https://en.wikipedia.org/wiki/Government_Pension_Fund_of_Norway

A 1,000 baht a month, that's what the Thai pension is, and if you're old and sick and have no one to care for you

You're in big trouble, some go to temples and die there, others just live on scrapes, what an ending

for the poor in this country.  

1 hour ago, BritManToo said:

They have that oil fund worth  $340k for every citizen.

$1.9 trillion https://en.wikipedia.org/wiki/Government_Pension_Fund_of_Norway

What happened to the 'don't care, not my business' motto of yours?

43 minutes ago, ezzra said:

What happened to the 'don't care, not my business' motto of yours?

That's only for anti white troll posts.

19 minutes ago, BritManToo said:

That's only for anti white troll posts.

never said the guy was white, you have assumed he was white which infect he wasn't.

2 hours ago, BritManToo said:

They have that oil fund worth  $340k for every citizen.

$1.9 trillion https://en.wikipedia.org/wiki/Government_Pension_Fund_of_Norway

your response to ' ...quite surprised that Netherlands should be the top. "

Help me out here: Netherlands is not alt name for Norway, right? Is this a 'non sequitur'? (does not follow)

The Thais get 500 baht a month for old age pension....What more could they want? This should cover a few sandwiches from 7-11 nicely every month...

 

I say Thailand be #1 for the worst pension in the world....

18 hours ago, dinsdale said:

For Thailand this must only include pensions for government workers because for the average Thai the "pension" is discraceful.

 

An assessment that does not take into account the economic characteristics of Thailand.

- Thailand  has capped fuel, water and electricity rates for non commercial users. In effect the rates are subsidized.

- Thailand has plentiful and low cost food options. The urban elderly live with extended families, and the rural elderly will typically have access to their own or community  fruit trees like banana or papaya. No it is not ideal, but most do not starve.

- The elderly have access to state  sponsored medical care and medications.

- Thai Old Age Allowance is age 60, however, many Thais are already receiving Social Security Assistance at age 55

- Almost all Thais qualify for the OAA, and there is no requirement to pay a contribution. OAA is funded from general tax revenues, and most Thais pay little tax other than VAT.

- In February it was announced that OAA was to increase to a flat 1000 baht/month from the age based 600-800 baht a month.

 

True, the amount is not enough to live comfortably, but  it is expected that thai families will care for their elderly members. If the OAA is to increase, then people would have to contribute and/or more taxes would be needed to pay for it. Perhaps an additional tourist tax or beer tax can be introduced to soothe your conscience.

 

19 hours ago, Middle Aged Grouch said:

When I see many people from Switzerland who have regular state pensions (not private investment yields)  that others in Europe, the USA, UK or Australia could not even dream of,  quite surprised that Netherlands should be the top. 

You can check it yourself. Switzerland is not that high..

https://www.mercer.com/insights/investments/market-outlook-and-trends/mercer-cfa-global-pension-index

5 hours ago, BritManToo said:

They have that oil fund worth  $340k for every citizen.

$1.9 trillion https://en.wikipedia.org/wiki/Government_Pension_Fund_of_Norway

From Switzerland, to Netherlands, to Norway..

That was a bit confusing. Are we sure they got the right country on top here?

In Thailand, civil servants get everything: pensions, early retirement, particularly favorable real estate loans, and additional discounts on car purchases. The rest of the population is treated second-class.......................

3 hours ago, Emdog said:

your response to ' ...quite surprised that Netherlands should be the top. "

Help me out here: Netherlands is not alt name for Norway, right? Is this a 'non sequitur'? (does not follow)

Who knows these days 😂😂

Particularly difficult to organize long-term contributions to an ever-growing pension fund in a country where some ⅓ of all government revenue disappears in corruption & theft by politicians, government officials and contractors.

20 hours ago, dinsdale said:

For Thailand this must only include pensions for government workers because for the average Thai the "pension" is discraceful.

Generally speaking your pension payment is linked to what you've paid in...

32 minutes ago, ujayujay said:

In Thailand, civil servants get everything: pensions, early retirement, particularly favorable real estate loans, and additional discounts on car purchases. The rest of the population is treated second-class.......................

 

And despite this, a fair few female teachers go silly on the favourable loans on property and vehicles, fall behind on payments, get upside-down on finance, plunge into debt... and sign up to online dating sites in order to snag a foreigner with a wedge.

A Thai lady tax paying friend in Pattaya need to do an CT scan on her shoulder, waiting time, 2 months minimum, 

or do it privately for 8,500 baht, so much for the 30-baht national health program.

8 minutes ago, ezzra said:

A Thai lady tax paying friend in Pattaya need to do an CT scan on her shoulder, waiting time, 2 months minimum, 

or do it privately for 8,500 baht, so much for the 30-baht national health program.

How come she's not in the Thai SS scheme then?

Ps. CT scans are a private hospital scam, nobody needs them.

Pps. And if she's a friend, why aren't you paying it, you're the one with the sticky beak.

39 minutes ago, hotchilli said:

Generally speaking your pension payment is linked to what you've paid in...

Right, but if you receive a minimum pension in most countries from 67 or so, you wouldn't have had to pay in anything at all. That's to include mums taking care of children and home, and others who haven't been able to work much during their life.

 

Thailand also do have a minimum "pension", but it's just a few hundred baht. They should afford to increase it quite a bit, but this is a cultural shift. The elderly's sons and daughters have been supporting their parents for centuries.

There is a pension fund of 1,000 billion euros in the Netherlands, which is a lot of money and actually comes from private individuals and companies, but the Dutch government has started to interfere with it, making that pension fund uncertain.

4 hours ago, Emdog said:

your response to ' ...quite surprised that Netherlands should be the top. "

Help me out here: Netherlands is not alt name for Norway, right? Is this a 'non sequitur'? (does not follow)

Yes he make a big mistake.

2 hours ago, ezzra said:

A Thai lady tax paying friend in Pattaya need to do an CT scan on her shoulder, waiting time, 2 months minimum, 

or do it privately for 8,500 baht, so much for the 30-baht national health program.

go to the big goverment hospital in Bangkok would be much quicker .