Hong Kong's pension system has been rated “B” in a global pension index, trailing Singapore once again due to weaker performance in long-term sustainability.
According to the Mercer CFA Institute Global Pension Index 2025, Singapore's system is the first in Asia to achieve a top “A” grade, ranking fourth globally.
The study evaluated 52 pension systems based on adequacy, sustainability, and integrity.
Hong Kong ranked 15th, up 10 places from 2024, and was described as “a sound structure with many good features, yet with some areas for improvement.”
It earned an “A” in integrity and a “B” in adequacy, but only a “C+” in sustainability.
Mercer said Singapore's top marks follow long-term improvements and a recent government focus on enhancing transparency.
Hong Kong’s ranking improvement, meanwhile, was mainly driven by higher targeted pension and net replacement rates.
To strengthen the city’s system, Mercer suggested requiring part of retirement benefits to be taken as an income stream, increasing household savings, and encouraging higher labor force participation among older workers.
Others with an “A” grade are the Netherlands (first), Iceland (second), Denmark (third) and Israel (fifth).
Mainland China fell seven places to 38th globally with a “C” grade.
The Mandatory Provident Fund Schemes Authority said the ranking recognized the MPF system’s performance in regulation, governance, member protection, and communication.
Meanwhile, an AIA Hong Kong survey found that 72 percent of local employees do not have sufficient retirement reserves, expecting to delay retirement by an average of 12.8 years.
The survey said while respondents hope to retire at 62.2 on average with a median nest egg of HK$3.3 million, the vast majority are falling short, facing an average savings deficit of HK$2.6 million.
