Botswana’s pension score declines in global index
Pauline Dikuelo | Wednesday November 4, 2026 06:00
According to 2026 Marsh CFA Institute Global Pension Index, the country got C after scoring 57.0 points and coming second amongst four African countries assessed. The figures showed Botswana’s ranking declined from 59.8 in 2025 to 57.0 in 2026, which highlights the need to ensure more people have access to retirement savings and that their contributions translate into reliable income throughout retirement. Alexforbes Botswana Head of Client Servicing, Nina Sephuma, said the priority should be to help more people save consistently while ensuring they understand their retirement options.
“The Index gives us a useful benchmark, but the score is not the end goal,” she said. “What matters is whether people have access to retirement saving, understand their options and can retire with greater financial security.” The Index assesses retirement income systems using three measures namely adequacy, sustainability and integrity. Adequacy examines whether retirement benefits provide meaningful financial support, while sustainability considers whether savings, funding and coverage can maintain retirement incomes over the long term. Integrity focuses on the regulatory framework, governance, member protection and communication needed to build confidence in retirement systems. The report attributes
Botswana’s decline primarily to a recent court ruling concerning the treatment of pension assets upon divorce and changes to the assessment of net pension replacement rates to account for informal employment. Alexforbes noted that the decline should therefore be understood in the context of legal developments and changes in the assessment methodology, rather than interpreted as a reflection of pension fund investment performance. The 2026 assessment also expands its consideration of pension adequacy by examining retirement income both at retirement and at age 80.
This places greater emphasis on whether pensioners can maintain sufficient income as they grow older. The Index retains its weighting of 40% for adequacy, 35% for sustainability and 25% for integrity. In the African comparison, Namibia scored 57.5, followed by Botswana at 57.0, Kenya at 53.1 and South Africa at 50.4. All four countries received a C grade. Kenya’s inclusion in this year's assessment expands African representation in the global index, which previously included Botswana, Namibia and South Africa. Globally, Netherlands led the rankings with 85.8 points, followed by Denmark and Iceland. Singapore, Israel and Australia completed the six countries awarded an A grade.
The 2026 Index assessed 55 retirement income systems representing approximately 66% of the world's population. Following the release of the Index, Alexforbes advised that Botswana should focus on broadening participation in retirement savings, encouraging affordable and consistent contributions, and preserving savings for retirement. It added that greater attention should be given to helping workers, particularly those outside formal employment arrangements, build retirement provision and understand how their savings can meet their financial needs later in life.
However, the financial advising firm emphasised that these priorities are intended to inform discussions on improving retirement outcomes and do not represent newly introduced compulsory contributions or preservation requirements in Botswana. The assessment evaluates national retirement income systems as a whole rather than individual pension funds or their investment returns.
Published by Marsh in collaboration with the CFA Institute and the Monash Centre for Financial Studies, the report was previously known as the Mercer CFA Institute Global Pension Index. Its name changed following Marsh's move towards a unified brand. The 18th edition also examines the impact of ageing populations on pension systems, highlighting the growing importance of ensuring that retirement arrangements remain financially sustainable as people live longer.