Singapore's CPF now ranks fourth in the world, and the rest of Southeast Asia is falling behind: the 2026 pension index

Which country in Southeast Asia has the best pension system? Singapore, by a wide margin. The Central Provident Fund scored 82 out of 100 in the 2026 Marsh CFA Institute Global Pension Index, ranking fourth in the world and earning the only A grade in the region, as reported by Asia Asset Management. The next best Southeast Asian system, Malaysia's, scored 61.1.

The gap matters for hundreds of millions of people. Southeast Asia is ageing fast, and the index shows that most of the region's retirement systems are improving only slowly while Singapore pulls further ahead. For workers, employers and governments, the scores are a measure of how ready each country is for a future with more retirees and fewer workers.

How the index works

The annual index, jointly published by Marsh and the CFA Institute and formerly known as the Mercer CFA Institute Global Pension Index, assesses retirement income systems on three criteria: adequacy, sustainability and integrity. Adequacy covers how much income retirees receive, sustainability covers whether the system can keep paying as populations age, and integrity covers governance, regulation and protection for members.

The 2026 edition, released on 20 October, covers 55 retirement systems representing about 66 percent of the world's population. Singapore is the only Southeast Asian economy to receive an A grade, placing it alongside the Netherlands, Denmark, Iceland, Israel and Australia among the world's six highest rated systems.

Singapore scored 82.8 for adequacy, 75.3 for sustainability and 90.4 for integrity, reflecting strong retirement benefits, long term funding and governance standards. Its overall score has risen steadily from 74.1 in 2022.

The index weights adequacy at 40 percent, sustainability at 35 percent and integrity at 25 percent, according to the methodology used in previous editions. That means a country can score well on governance but still rank modestly if retirees receive low incomes or the system faces long term funding pressure.

A widening regional divide

The rest of the region is improving, but slowly. Five of the six Southeast Asian systems covered by the index raised their scores from a year earlier, with Indonesia the only exception. Yet the gap between Singapore and Malaysia, the second best in the region, widened to 20.9 points from 20.2 points in 2025 and 11 points in 2022.

Malaysia received a C plus grade. It scores 79 on integrity, well above its 54 for adequacy and 56.4 for sustainability, suggesting an established savings framework but real challenges in ensuring sufficient retirement income and long term resilience. Malaysia's score is down from 63.1 in 2022, though it has recovered from a low of 56 in 2023.

Singapore built a pension system that is ready for an ageing society. Most of its neighbours are still building one while the society ages around them.

Further down, Thailand overtook Indonesia to become the fourth ranked Southeast Asian system at 52.2 points, while Indonesia slipped marginally to 50.7 from 51. Vietnam held third place, improving to 54.6 from 53.7.

Vietnam's steady improvement reflects reforms to its social insurance system, although coverage of informal workers remains a challenge there as in much of the region. Thailand's rise past Indonesia shows that even modest improvements in coverage and governance can shift rankings among the region's middle tier systems.

The Philippines at the bottom

The Philippines recorded the region's largest annual improvement, gaining 2.1 points to 49.2, but it remains the lowest ranked Southeast Asian system with a D grade. Its integrity score of 35.7 is particularly weak compared with other regional systems, pointing to concerns about governance, regulation and member protection.

That matters in a country where millions of workers are in informal jobs or work abroad, making it harder to build up retirement savings through formal schemes. The weak peso and high inflation this year add pressure on savers, as we covered in our report on the peso's record low.

The Philippines' state pension fund, the Social Security System, recently appointed a new president and chief executive, Victor Limlingan, giving the system new leadership as it seeks to improve.

Why it matters now

Retirement systems worldwide face mounting pressure from declining fertility, longer life expectancy and changing work patterns. The report warns that traditional retirement ages of 60 or 65 are becoming misaligned with longer and healthier lives, and that the rise of gig and part time work requires more flexible pension arrangements.

"The data shows that even the best performing systems need to keep evolving; no system can afford to stand still in the face of these demographic shifts," said Tim Jenkins, a Marsh partner and the report's lead author. For Southeast Asia, where gig work through ride hailing and delivery platforms has boomed, that warning is especially relevant. The key reforms the region's laggards could consider include:

• Raising coverage for informal, gig and overseas workers
• Increasing contribution levels and preserving savings until retirement
• Adjusting retirement ages to reflect longer life expectancy
• Strengthening governance, regulation and member protection
• Offering retirement income products rather than lump sums alone

Southeast Asia's demographic shift is happening faster than Europe's did. Thailand and Singapore already have large and growing shares of older residents, and Vietnam is ageing before it becomes rich. That means pension systems have less time to build up reserves, and governments face difficult choices between raising contributions, extending retirement ages and increasing public spending on older people.

What it means for savers and investors

For workers, the index is a reminder that national pension systems may not be enough, especially outside Singapore. Personal savings, employer schemes and long term investments will matter more as populations age. Citi's latest research found that more than 70 percent of Singapore's affluent wealth still sits in cash, as we covered in our report on Citi's Singapore wealth findings, a sign that even in the region's best prepared country, many savers keep money in low return deposits.

For asset managers, the region's pension funds are a growing pool of capital that will need professional management, from Malaysia's Employees Provident Fund to emerging funds in Vietnam and the Philippines. Improving pension systems will mean deeper capital markets and more long term investment across Southeast Asia.

For governments, the index offers a practical benchmark. Countries that want to move up the rankings can look at specific weaknesses, such as the Philippines' integrity score or Malaysia's adequacy score, and target reforms accordingly. Improvements in governance and member protection can lift scores relatively quickly, while adequacy and sustainability require longer term changes to contributions and coverage.

Singapore's fourth place finish in the 2026 Global Pension Index highlights a retirement system built for an ageing society, while its neighbours improve far more slowly. The widening gap shows that Southeast Asia's demographic clock is running faster than many of its pension reforms. For workers across the region, personal savings and long term investing will matter more with every passing year.