America's retirement system just got a middling review from a global study. These 5 reforms could save it

Core Insights - The Mercer CFA Institute Global Pension Index 2025 has rated the U.S. retirement system with a C+ grade and a score of 61.1 out of 100, indicating it is in the middle tier globally [1][2] Retirement System Evaluation - Top-rated countries include Singapore, Iceland, and Denmark, which received A ratings for their robust and trustworthy retirement systems [2] - The U.S. system is characterized by some benefits but also significant flaws, contributing to its C+ rating [2] Changing Responsibilities - There is a growing urgency for Americans to fund their own retirement as employers shift from traditional pensions to defined-contribution plans like 401(k)s, placing the responsibility on workers [3] Savings Discrepancies - Many Americans aim to save $1 million or more for retirement, yet the median retirement savings for working-age Americans is only $955 when including those with no savings [4] - The average 401(k) balance is reported at $146,400, highlighting the unevenness in retirement readiness despite some individuals experiencing rising account balances during strong market years [4] Demographic Challenges - Aging populations, increased life expectancy, and fiscal pressures on government programs are creating significant challenges for retirement security globally [5] - Changes in job mobility, longevity post-retirement, and rising living costs necessitate reforms in the American retirement system [5]