The Netherlands has been named the world’s best pension system for the fourth consecutive year, ahead of Denmark and Iceland. The latest international ranking puts the Dutch retirement system at the top as the country continues to overhaul its pension rules.

Netherlands tops global pension ranking again

The Netherlands scored 85,8 out of 100 in the 2026 Marsh CFA Institute Global Pension Index, which assessed 55 retirement income systems covering around 66 percent of the world’s population. Denmark came second with 84,1 points, followed by Iceland with 84,0.

Singapore (82,0), Israel (81,9) and Australia (80,6) completed the six countries awarded an A grade, the highest classification. Australia entered the top category this year.

The study measured pension systems in three areas: adequacy, or how well pensions support people in retirement; sustainability, or their ability to keep paying benefits; and integrity, including governance and protections for members.

Why does the Dutch pension system rank so highly?

The Netherlands combines a basic state pension (AOW) with workplace pensions covering most employees. Substantial pension savings invested for the future, alongside strong regulation and oversight, also contributed to its high score.

The country is nevertheless in the middle of a major pension overhaul. Under the new rules, workplace pensions are more directly linked to contributions and investment returns, while risks continue to be shared collectively.

According to the Dutch government, pension providers must complete the transition to the new system by January 1, 2028.

What does this mean for internationals in the Netherlands?

A top-ranking pension system does not guarantee that every resident will receive a full Dutch pension. Under the AOW scheme, people generally build up 2 percent of their full state pension for each year they are insured, meaning 50 years of coverage is needed for the full amount.

Those who move to the Netherlands later in life may therefore receive only a partial AOW pension. Their total retirement income may also include any workplace pension they have built up, making it important to check their individual entitlements.

Residents can check their expected Dutch state pension and accumulated workplace pensions through Mijnpensioenoverzicht.nl.