Retirement in Kuwait ranks higher than in France, Germany, and Britain

Kuwait has strengthened its position on the global retirement systems map, scoring 72.9 out of 100 in the 2026 Global Retirement Index by Marsh and the Chartered Financial Analysts Institute (CFA Institute). This score secured a “B” rating in the high-performing systems category, according to the results of the 18th edition of the index, which compares 55 retirement systems worldwide, representing approximately two-thirds of the global population.

This performance reflects the standing of Kuwait’s retirement system, particularly in providing retirement benefits and financial protection levels for beneficiaries. Kuwait stood out notably in the “Benefit Adequacy” pillar, scoring 88.3 points and achieving an “A” rating, surpassing major global economies including France, Germany, and Switzerland in this specific aspect.

The index is published in collaboration between Marsh, a global risk management and advisory services firm; the CFA Institute; and the Monash Business School’s Centre for Financial Studies at Monash University in Australia. It is considered one of the most prominent international specialized indices for evaluating retirement systems, based on a set of criteria measuring benefit adequacy, financial sustainability, and institutional integrity.

Regionally, Kuwait ranked second with 72.9 points, trailing Saudi Arabia by 0.3 points, which scored 73.2. The United Arab Emirates followed with 70 points, then Oman with 69.9 points, and Qatar with 66 points.

These comparisons gain significance given the differences in retirement systems across countries, whether in terms of funding sources, the nature of benefits provided, or the regulatory frameworks governing pension entitlements. They also highlight the importance of evaluating each pillar individually, alongside the overall score, to understand the strengths and challenges of each system.

The “Benefit Adequacy” pillar constituted the most prominent aspect of Kuwait’s outstanding performance, where it scored 88.3 points and received an “A” rating, surpassing the results of several countries that achieved the highest overall ratings in the index. This pillar carries a relative weight of 40% of the final score and measures the adequacy of benefits provided by retirement systems to beneficiaries, including the level of retirement income compared to pre-retirement income, and the ability of pensions to meet living expenses.

Kuwait outperformed Australia, which scored 76.7 points, Singapore with 82.8 points, Iceland with 83.7 points, and Denmark with 84.2 points in this pillar. Kuwait also clearly surpassed its Swiss counterpart, which scored 68.4 points, underscoring the strength of Kuwait’s performance in providing retirement benefits according to the index’s standards.

These results underscore the importance of pension adequacy in evaluating the efficiency of retirement systems. The assessment is not limited to the system’s ability to meet its financial obligations but also includes the level of economic protection it provides to retirees and the continuity of their income after the end of their working lives.

In addition to benefit adequacy, the index evaluates retirement systems through two main pillars: financial sustainability and institutional integrity, providing a broader assessment of these systems’ capacity to endure and protect participants’ rights.

In the sustainability pillar, which accounts for 35% of the total score, Kuwait scored 60.1 points, exceeding the international average of 55.4 points. This pillar evaluates the ability of retirement systems to meet their long-term obligations, considering factors such as demographics, economic growth, and insurance coverage levels.

In the integrity pillar, which accounts for 25% of the assessment, Kuwait scored 66.4 points. This pillar focuses on regulatory frameworks, governance, and transparency, as well as the availability of mechanisms that support sound management of pension systems and protect the interests of contributors and beneficiaries.

The results indicate that the assessment of pension systems is not based solely on the level of current benefits, but also takes into account financial sustainability and governance quality, which are essential factors for ensuring the continued provision of benefits in the future.

Globally, the Netherlands topped the index with 85.8 points, followed by Denmark with 84.1 points, and Iceland with 84 points. Singapore and Australia were among the countries with the highest overall ratings, alongside the leading nations. The 2026 report highlighted the implications of population aging as one of the most significant challenges facing pension systems, given declining birth rates and rising life expectancy, which place increasing pressure on pension funding and the sustainability of allocated resources.

In this context, the index revised its methodology for calculating income replacement rates. The assessment of pension adequacy no longer relies solely on income levels at retirement, which account for 75% of this component, but also incorporates income levels at age 80, weighted at 25%, to measure the extent to which pensions remain adequate throughout different stages of retirement.