How does the U.S. retirement system stack up against other countries? Just above average.

Above average, but just.

This is how the U.S. retirement system ranks in the latest Mercer CFA Institute Global Pension Index, which examines systems in countries across the world. 

The U.S. system, which is funded mostly by individual retirement accounts (IRA), 401(k)s and Social Security, received an overall grade of C+, according to the report released Tuesday. It scored 63 out of 100, down from last year’s 63.9 and just squeaking in above the 62.9 average of all countries. U.S. scores declined in every subcategory – adequacy, sustainability and integrity – that make up the overall score. But the largest drag was from integrity. 

Integrity covers regulation and governance and protection, communication and reasonable costs for individuals in the system. Without integrity, people would lose confidence in the retirement safety net, the report said. The U.S. integrity score dropped to 59.5 from 61.7 last year, sharply below the 71.6 average and putting the nation at 41 out of 47 countries examined. 

“It is critical that the community has confidence in the ability of private-sector pension providers to deliver retirement benefits over many years into the future,” it said. 

Protect your assets: Best high-yield savings accounts of 2023

Where does the US rank in retirement? 

The U.S. retirement system ranked 22 out of 47 countries globally, the report said. 

What country has the best retirement? 

The top three countries, according to the research, are: 

1. Netherlands (score of 85/100) 

1. Iceland (83.5) 

1. Denmark (81.3) 

What country has the worst retirement? 

The bottom three countries, according to the report, are: 

1. Argentina (score of 42.3/100) 

1. Philippines (45.2) 

1. India (45.9) 

Is it better to retire in Canada or USA? 

If you’re just looking at retirement systems, the research report shows Canada’s system ranks above the U.S.  

Canada received an overall B grade and a score of 70.2 out of 100, compared with the U.S. grade of C+ and 63.0, respectively. 

What’s stressing retirement systems globally? 

Pressure is building on retirement systems all over the world, the report said. They include: 

1. Falling birth rates have “major consequences for pay-as-you-go pension arrangements, which rely on the next generation of taxpayers to fund the pensions paid to previous generations. Many governments will need to tackle the very tricky issues of reducing the benefits or increasing the eligibility age for these pensions,” it said. 

1. High inflation and interest rates increase the cost of existing government debt and may hurt the government’s ability to continue offering current retirement services. 

1. Transition to defined contribution plans from guaranteed pension plans means individuals carry all the risks relating to investment returns, inflation and, often, longevity. 

1. Increase in gig workers and those in the informal labor market means more individually focused retirement plans and less reliance on employers. “Technology may be part of the answer to improving pension coverage, but this also requires strong government leadership,” the report said.  

Savings check:Smart ways to save for retirement at every age

How can the U.S. improve retirement? 

Some of the report’s suggestions include: 

• Raising the minimum pension for low-income people 

• Maintaining the real value (or adjusting for inflation) of workers’ benefits through to retirement 

• Limiting access to savings before retirement to preserve the money for retirement 

What can you do to improve your retirement? 

Experts say you should: 

• Start young so, you have a longer time to enjoy compound growth. Compound growth means your money grows exponentially over time since you get a return on your initial investment plus everything you earned on that investment. 
• Automate your 401(k)contributions. 
• Maximize any contribution matches. If your company doesn’t offer 401(k) matches or you work independently, trading platforms like Robinhood and SoFi Invest will match 1% of your IRA contributions. 
• If you’re at least 50 years old, take advantage of catch-up contributions. 
• And importantly, estimate how much you’ll need for retirement and regularly check you’re on track to meet your goals. 
• Consider carefully when you decide to start taking Social Security benefits.

When is the US retirement age for Social Security?

You can start receiving your Social Security retirement benefits as early as age 62, the Social Security Administration says. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.

Full retirement age depends on when you were born.

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Fr