What is the MMGPI?
The Melbourne Mercer Global Pension Index (MMGPI) is produced through a collaboration between Mercer and Australian Centre for Financial Studies (ACFS), a research centre with the Monash Business School, with funding provided by the Victorian Government as part of its ongoing support for leadership in the financial services sector.
The Very Significant Impact of Ageing Populations
In 2016 the MMGPI has looked at the impact of rapidly ageing populations, and the preparedness of countries’ retirement systems to deal with the significant financial pressures this presents.
Without changes to retirement and eligibility ages for social security and private pensions, there will be increasing pressure on our retirement systems to the detriment of the older members of society.
The major causes of this demographic shift are lower fertility rates and longer life expectancy. The very significant impact of this change is further explored in Chapter 4 of the full report.
Old age dependency ratios are increasing
The old age dependency ratio is measured as the population aged 65 and over, divided by the population aged 20 to 64, multiplied by 100.
Calculating the Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index uses a multi-pillar approach to compare retirement income systems.
A Global Scorecard for Retirement Savings
There is no perfect pension system that can be applied universally, but there are many common features that can be shared for better outcomes.