How does New Zealand's pension system compare internationally?

New Zealand's retirement system has moved up in a world ranking - but increasing contribution rates could push it even further, the research's lead author says.Marsh has released its latest CFA Institute Global Pension Index, which rates schemes around the world on their integrity, adequacy and sustainability. It includes both NZ Super and KiwiSaver in its assessment of New Zealand's system.Schemes are ranked from A to D.This year, A-rated schemes included Netherlands, Denmark, Iceland, Singapore, Israel and, for the first time, Australia.New Zealand recorded its best ever result, a B and 15th out of 55 system. The score increased this year because of higher net income replacement rates and a high household savings rate. Our scheme is most weak on adequacy at 34 out of 55.This country's scheme scored a B for adequacy, a B for sustainability but an A for integrity.Tim Jenkins, lead author and partner, superannuation consulting leader at Marsh, said the report confirmed New Zealand as a solidly B-grade system with many good features.He said the adequacy measure considered how much was being paid to people, sustainability looked at whether it was affordable and integrity considered whether people could trust the system in terms of its communication and governance."The score increased slightly for adequacy, which is all about the assets in KiwiSaver starting to grow. They're a little bit higher than they used to be. And the score for integrity also increased with the governance structures in place and the way you communicate. So it's little improvements every year, it's leading to a higher score."Philippines, India, Türkiye and Argentina were ranked a D.Political parties have been promising higher contribution rates for KiwiSaver and Jenkins said that would improve New Zealand's ranking."If KiwiSaver contributions were higher, then the score would increase over time. It's all about what the system is today, though. It's not about what the system could be tomorrow."He said New Zealand and Australia had similar integrity scores but the difference was in adequacy and sustainability."In Australia, you've got 12 percent super guarantee, but you've also got a means-tested age pension. So the two together is what you look at for that. And of course, because it's a means-tested age pension and you've got 12 percent super guarantee, the system is sustainable."In New Zealand, the ageing population means that the expense for NZ super will increase over time unless alterations made to that. It doesn't mean that it should be changed. It just means it will be more expensive to run that for the future. So sustainability is a lower score than it is for Australia quite significantly."He said New Zealand's adequacy could be helped by decoupling the KiwiSaver access age from the age of eligibility for NZ Super."People retire at different ages and, in fact, we're seeing that quite significantly now. Many people are working longer ... decoupling the two means you have more flexibility in supporting retirement needs."He said no system could stand still."People are living longer, birth rates are falling, and the ratio of workers to retirees is shrinking everywhere, New Zealand included. The systems that perform best are the ones that keep adapting."Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make and spend money