The UK retirement income system ranks fifth in the world, according to the Melbourne Mercer Global Pension Index.

The index compares 11 major private and public pension systems from around the world rating them on adequacy, sustainability and integrity.

The Netherlands took top ranking in the Index with a score of 76.1 out of a maximum of 100, followed by Australia (74.0), Sweden (73.5) and Canada (73.2).

John Betts, worldwide partner in Mercer’s retirement business, says that while the UK system boasts some good features, major faults need to be addressed to ensure long-term sustainability.”