UAE Achieves Milestone As First Arab Country To Measure Pension Indicators In 2024 Mercer Global Pension Index

The UAE has become the first Arab nation and the 23rd globally to have its pension indicators evaluated in the 2024 Mercer Global Pension Index (MCGPI) report, according to Mubarak Rashed Al Mansoori, Chairman of the Board of Directors for the General Pension and Social Security Authority (GPSSA). This achievement aligns with the UAE's goal to enhance Emiratis' quality of life, a key focus in the government's development agenda.

Al Mansoori highlighted that the UAE's retirement income system has shown consistent improvement over four years. In 2024, it achieved a score of 77.1 for adequacy, ranking 12th globally. The integrity of its pension scheme scored 75.3, placing it 25th worldwide. "Despite the fact that the MCGPI benchmarks retirement income systems around the world, the index represents a broader strategy for the government and its emphasis on providing numerous benefits to Emiratis across various sectors such as education, health, housing and other social services. Pension and insurance are considered one of those priority areas that aim to improve the overall quality of life for its nationals by offering more sustainable pension solutions," he added.

The MCGPI report is part of the 16th annual Mercer CFA Institute Global Pension Index. It compares 48 retirement income systems globally, covering 65% of the world's population. The UAE's inclusion reflects significant progress in its pension system, which ranked 23rd worldwide. This marks an improvement for four consecutive years.

The report assessed indicators from GPSSA, Abu Dhabi Pension Fund, and Sharjah Social Security Fund. The UAE's index value rose from 62.5 in 2023 to 64.8 in 2024 due to strategic decisions like increasing the pension age as life expectancies rise. This change aims to offer more beneficial pension outcomes for Emirati families.

The UAE's articulate governance structure played a crucial role in these advancements. By adjusting policies such as raising the retirement age, it ensures more rewarding pensions for citizens. This approach contributes to better financial security for Emirati households.

The MCGPI not only benchmarks global retirement income systems but also highlights broader governmental strategies focused on enhancing Emiratis' lives through various sectors like education, health, housing, and social services.

This milestone supports ongoing efforts to provide sustainable pension solutions and improve overall living standards for nationals. The UAE continues to prioritise these areas as part of its comprehensive development plan.

With inputs from WAM