Due to the low replacement rate, i.e. the ratio of the average pension to the average salary, and poor benefits for women, Poland dropped in the ranking of pension systems by Mercer Polska and is ranked 25th out of 39 countries.
In the Mercer CFA Global Pension Index (MCGPI) report, our country was classified into the group of countries with pension systems having some good features, but also significant shortcomings and risks that should be eliminated because they threaten the system's insolvency. In this group, apart from us, there are countries such as Saudi Arabia, Austria, Spain, South Korea and Italy.
Our rating (54.7 points) was below the average (59.7 points), and we are almost 30 points away from the best Netherlands (82.6). In the survey, each country is rated on a scale from 0 to 100 points. The total index value is a weighted average of three criteria: adequacy, long-term solvency and legal security of the system.
Poland's position in the ranking was most affected by low replacement rates, i.e. the ratio of the average old-age pension to the average salary. They are currently around 50 percent, and in 2060 they may be no more than 35 percent.
Compared to other countries, we are doing very badly when it comes to women's retirement provision. Their low pensions result, inter alia, from a shorter contribution period, mainly due to parental responsibilities, early retirement and longer life expectancy.
As Krzysztof Nowak, a partner of Mercer Marsh Benefits, explains, the retirement age for women and men in OECD countries is different, apart from Poland, just in eight countries.