TAIPEI (Taiwan News) — Taiwan has fallen behind its major rivals in East Asia in the Mercer CFA Institute Global Pension Index 2025.

The index rates pension systems from A to E, and Taiwan was classified in the C category, per Liberty Times. Taiwan ranked 45th this year, below China (38), Japan (39), and South Korea (43), but ahead of Indonesia (47) and Thailand (48). 

Taiwan's overall score dropped from 53.7 to 51.8, mainly due to updated data on household savings. The report suggested Taiwan could raise its rating by improving the minimum level of support for the poorest elderly and requiring a portion of retirement benefits to be paid as regular income.

It called for gradually raising the statutory retirement age to keep pace with longer life expectancies. The authors also recommended increasing labor participation among older adults.

Singapore joined the top-rated category for the first time, while the Netherlands retained its position as No. 1. Report lead author Tim Jenkins, a senior partner at Mercer Australia, said Singapore’s rise from a C to an A rating was aided by its strong economy, as the index’s sustainability component takes long-term economic growth into account.

Five countries received the highest A rating in the index: the Netherlands, Iceland, Denmark, Israel, and Singapore. The report, released on Oct. 15, evaluated 52 pension systems based on three criteria: adequacy, sustainability, and integrity.