Iceland has the best pension system in the world, according to the Mercer CFA Institute Global Pension Index for 2021 — a global study that shines a light on how nations are preparing their aging populations for retirement. It drew praise for being well governed and providing strong benefits to retirees, including a generous state pension.

       The scores of 11 countries, including India and South Korea, slipped this year as the world battles to limit the economic fallout from the Covid-19 crisis.

       The current economic environment with reduced wage growth, historically low interest rates and shrinking returns in many asset classes, is placing additional financial pressures on existing retirement income systems, the report said.