The UAE has received A grades for pension adequacy and integrity in the 2026 Marsh CFA Institute Global Pension Index, highlighting the strength of its retirement benefits, regulatory framework and protections for pension members.
The country’s adequacy score increased to 84.9 from 79.4 in 2025, while its integrity score rose to 80.8 from 75.5, reflecting improvements in retirement income support, governance and member protection.
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The results also helped lift the UAE’s overall pension system rating from C+ to B, with its total score rising to 70 from 64.9 last year.
The UAE was among four retirement income systems worldwide to record significant score improvements in 2026, alongside Oman, Taiwan and Saudi Arabia.
Stronger retirement benefits and governance
According to the report, the UAE’s high adequacy score reflects strong minimum pension support for older people on lower incomes, as well as retirement benefits that replace a substantial proportion of pre-retirement earnings across different income groups.
The integrity assessment recognizes the country’s regulatory and governance framework, including protections for pension members and communication about their entitlements.
Several factors contributed to the improvement, including an increase in the minimum pension relative to average wages, updated pension coverage data and improved information on requirements for transitioning into retirement.
The assessment also incorporated updated household debt data.
All GCC pension systems receive B ratings
The report found that all five GCC retirement income systems assessed this year received an overall B grade, with Qatar joining the index for the first time.
Saudi Arabia recorded the highest overall score among the five systems at 73.2, followed by Kuwait at 72.9, the UAE at 70, Oman at 69.9 and Qatar at 66.
The UAE and Oman improved from C+ to B, while Saudi Arabia and Kuwait maintained their B ratings.
Tarek Lotfy, President of Marsh People and Investments IMEA, said the results reflected progress across the region.
“Having all five GCC pension systems assessed receive B grades is a positive result for the region, with the UAE’s higher rating adding to that picture,” Lotfy said.
He added that longer life expectancies mean governments and employers must consider how pension arrangements will continue to provide dependable retirement income for future generations.
Wider pension coverage could support future retirees
The UAE pension arrangements covered by the report primarily serve eligible Emirati nationals through employment-based schemes and minimum state pension provisions.
These include systems administered by the General Pension and Social Security Authority, the Abu Dhabi Pension Fund and the Sharjah Social Security Fund.
Claudia Maldonado, Head of Savings and Pensions at Marsh Middle East, said expanding workplace pension participation could help strengthen retirement savings.
“Wider pension coverage means more people saving for retirement through their employer, which increases the total amount saved for future benefits,” Maldonado said.
She added that clearer information about pension entitlements would help employees better understand their expected retirement income and make informed financial decisions as they approach retirement.
Global pension systems face growing pressure
Now in its 18th edition, the Marsh CFA Institute Global Pension Index evaluates 55 retirement income systems covering approximately 66 per cent of the world’s population.
The index assesses three key areas: adequacy, which measures retirement benefits; sustainability, which considers whether pension systems can continue providing benefits over time; and integrity, which examines regulation, governance and member protection.
The report highlights the growing need for pension systems to adapt to longer life expectancies and changing employment patterns.
For the UAE, the A grades in adequacy and integrity reflect strengths in retirement benefits and governance, while the improvement in its overall rating points to progress in the country’s pension system. However, the lower sustainability score indicates that long-term funding and broader retirement coverage remain important priorities.
Source: Khaleej Times