Global Retirement Index announced: Türkiye ranks last in Europe

Increasing life expectancy, falling birth rates and the decline in the ratio of the working population to the number of retirees increase the financial pressure on social security systems.

The 2026 Global Retirement Index, prepared by the Marsh CFA Institute and examining 55 retirement systems covering 66 percent of the world's population, has been published.

Retirement systems in the research; It was evaluated based on income adequacy, sustainability and reliability criteria.

Türkiye IS LAST IN EUROPE

Among the 19 European countries examined in the report, Türkiye ranked last in the overall ranking.

Türkiye; It was one of the countries with the lowest scores among European countries evaluated under the headings of adequacy of retirement income, financing structure and sustainability of the system.

It was pointed out that the disruption of the employee-retiree balance makes the long-term financial structure difficult, especially in distribution-based systems where existing pensions are financed with the premiums paid by active employees.

NETHERLANDS ARE AT THE TOP WITH 85.8 POINTS

According to the index results, the Netherlands ranked first for the fourth time with 85.8 points out of 100.

The structure formed by state pension, widespread workplace pension plans and investment funds was effective in the Netherlands' high score.

The Netherlands was followed by Denmark with 84.1 points and Iceland with 84 points.

Sweden, Finland, Norway, Singapore, Israel and Australia were also among the high-scoring countries.

SUSTAINABILITY PROBLEM IN SPAIN AND FRANCE

The report found that in some countries there are significant differences between the adequacy of retirement income and the long-term sustainability of the system.

While Spain received 83 points in the income adequacy criterion, it remained at 33 points in the sustainability criterion.

Although France reached 85 points in qualification, it received 49.3 points in the sustainability category.

PROPOSAL TO LINK RETIREMENT AGE TO LIFE EXPECTATION

In the report, it was suggested that the retirement age should be indexed to the average life expectancy and that working longer hours should be encouraged in order to maintain the financial balance of social security systems.

German Central Bank President Joachim Nagel also stated that tying the retirement age to life expectancy for the period after 2031 may be considered.

ADDITIONAL RETIREMENT MODELS STAND OUT

Experts state that public retirement income should be supported by automatic enrollment-based additional retirement plans, private savings and employer contributions.

It is stated that if structural reforms are delayed, options such as increasing tax rates, extending working hours or cutting pensions may come to the fore.