With ageing populations, low or negative interest rates for longer, and uncertain investment returns in the future, the financial wellbeing of our future retirees cannot be left to chance. It must be considered now, leading to our recommendations for urgent long-term pension reform in these challenging times.

The 2021 Mercer CFA Institute Global Pension Index compares 43 retirement income systems from around the world and compares each system in respect of adequacy, sustainability and integrity. Or, to put it another way: • What benefits are future retirees likely to receive?

• Can the existing systems continue to deliver, notwithstanding the demographic and economic pressures?

• Are the systems well governed to encourage long-term community confidence?

Four new systems have been added to the Index this year, namely Iceland, China Taiwan, UAE and Uruguay. In its first appearance in the Index, Iceland has just pipped the Netherlands to receive the highest index value. So what are the features of the Icelandic system that generates this result? They include: • A relatively generous state pension; • A private pension system that covers all employees with a high contribution rate that leads to significant assets being set aside for the future; and • A well-governed and regulated private pension system that has good design features.