Argentina’s pension system among the worst
Friday, October 17th 2025 – 01:34 UTC
Argentina’s ability to pay retirement benefits in the medium and long run was also doubted
According to the 2025 Mercer CFA Institute Global Pension Index, Argentina’s pension system ranked 51st out of 52 countries surveyed, while those of Chile and Uruguay stood out in the region. The Netherlands topped the list globally with a score of 85.4 (A rating).
The Argentine and Uruguayan systems differ by 25.2 points and thirty places in the global ranking, highlighting a marked disparity between these neighboring nations. Argentina scored 45.9 points with a D rating to surpass only India. The poor grading reflected critical structural weaknesses, experts warned. Other Latin American countries measured were Mexico (69.3 points, B), Colombia (62.5 points, C+), Brazil (56.2 points, C), and Peru (55.3 points, C). The report also raised concerns about Argentina’s ability to maintain the payment of retirement benefits in the medium and long term.
There is growing regional interest in strengthening pension systems, evidenced by reforms in countries like Mexico, Chile, Colombia, and Uruguay, focusing on increasing contributions and improving investment strategies, the study also found.
Uruguay’s system is considered robust and balanced across all three index dimensions (Adequacy, Sustainability, and Integrity). Its strong Adequacy score (83.8 points) suggests its mixed system (public and private pillars) provides suitable benefits. Recent reforms include progressively extending the retirement age and creating incentives for a longer working life.
The Global Pension Index evaluates systems based on three core dimensions: Adequacy – Whether pensions provide a dignified standard of living; Sustainability – The system’s capacity to remain financially viable in the future; and Integrity – The level of transparency, governance, and protection of workers’ savings.
“Eight retirement income systems improved their rating in the Index this year, and no system suffered a decline,” the report noted while highlighting that “retirement income provision is improving globally.”
There is a growing interest in strengthening pension systems, evidenced by the reforms implemented or under review in countries such as Mexico, Chile, Colombia, and Uruguay, Mercer’s Leonardo Lara explained. These nations are making significant changes to the structure of their systems, increasing contributions to retirement savings, and improving investment strategies, he added.
Uruguay continues to consolidate a solid and sustainable pension system thanks to technical reforms that have improved fiscal sustainability and the adequacy of pensions, explained Dolores Liendo, Mercer’s Wealth Leader for Argentina, Uruguay, and Paraguay. The country has introduced a set of technical reforms, including gradually raising the retirement age, establishing tax and labor incentives to prolong individuals’ participation in the workforce, and enhancing voluntary supplementary savings schemes.
The challenge now is to complement the pension reform with active senior employment policies, ongoing training, and the promotion of voluntary savings, she further mentioned.
The sooner we incorporate tools that help individuals visualize their future pensions and the decisions that determine them, the better prepared the next generation will be for longevity with well-being and dignity, she also pointed out regarding people’s need for a sound financial education.
Argentina maintains a critical position, reflecting persistent structural challenges in sustainability and integrity, Liendo insisted. To move forward, it is essential to implement reforms that strengthen labor formalization, protect the purchasing power of retirees, improve the transparency and efficiency of the system, simplify contribution regimes, and combine concrete incentives for self-employed and informal workers. The report also notes that the high rate of labor informality, which exceeds 35% according to official figures, constantly erodes the taxpayer base and directly affects financial sustainability.