The Spanish pension system offers good protection to older people with fewer resources and maintains high replacement rates, according to this year's edition of the Marsh CFA Institute Global Pension Index. The study, which compares 55 models from around the world and covers 66% of the global population, awards Spain a score of 63.3 out of 100, slightly below last year's 63.8 points, ranking it 30th. The Netherlands (85.8 points), Denmark (84.1), and Iceland (84.0) lead the table.
The report attributes the decline compared to last year mainly to the increase in pension spending as a proportion of the total, and proposes to improve the score by expanding the coverage of employment pension plans through automatic enrolment, as well as receiving part of the benefits as periodic income during retirement.
By areas, Spain stands out in adequacy, with 83 points, an indicator that measures whether pensions provide sufficient income during retirement. In sustainability, it scores 33 points, reflecting the challenges of maintaining benefits in the long term. In integrity, the index reaches 74.3 points and evaluates aspects such as regulation and governance of the system.
Furthermore, the study also points out that the major common challenge is the response to the ageing population through the design of pension systems that are sustainable in the long term.
“The increase in longevity is too significant to ignore, as it affects individuals, governments, economies, and societies in a widespread manner,” comments Pat Tomlinson, chairman and CEO of Marsh People and Investments.
For this reason, the 2026 Index highlights three key policy responses to tackle this major demographic challenge: establishing clear objectives for pension systems; prioritising the financing of future retirement obligations; and increasing flexibility in the design of pension products and retirement age structures.