Arabic version: شيخوخة السكان تضغط على أنظمة التقاعد العالمية
According to Cnbc, pension systems worldwide are facing growing strain as people live longer and birth rates fall, stretching retirement assets over more years while the number of workers contributing to those systems declines. Defined-benefit plans face rising liabilities as retirees live longer, while defined-contribution members risk outliving their savings.
The 2026 Marsh CFA Institute Global Pension Index, covering 55 pension systems, found that 43 have fertility rates below the replacement level of 2.1 children per woman. In 23 systems, fertility is below 1.5. The report said life expectancy at age 65 in more developed regions has risen 50.9% since 1950, to about 20 additional years, increasing the period for which retirement benefits must be paid.
Sebastien Betermier, executive director at the International Centre for Pension Management, described the challenge as increasingly pronounced. He said some funds have members aged 107 or 108 who have been retired for nearly half a century. The MCGPI report warned that funding pensions and aged care becomes more critical as the ratio of workers to retirees declines, adding that few systems are secure as they currently operate.
Pay-as-you-go systems are particularly exposed because current workers’ contributions largely finance benefits for current retirees. Fully funded schemes also face pressure when benefit payments exceed incoming contributions. In Australia, about a third of superannuation funds recorded negative natural cash flows from assets over a three-year period, according to a 2025 Australian Prudential Regulation Authority report.
The demographic shift is prompting some funds to seek higher returns through private equity, infrastructure and private credit, although that can bring greater investment risk. Jean-Pierre Aubry of the Center for Retirement Research at Boston College said funds are shifting more risk where possible. Hostplus CEO David Elias said ageing is only one factor in investment decisions and stressed diversification, while noting governments could help address demographic pressures through measures including immigration policies and technological advances.
