The Netherlands scored high marks within the survey of 47 pension programs world wide. (Representative picture)
The ongoing enlargement of AI throughout the operations and choices of funding managers might result in extra environment friendly and higher knowledgeable determination-making
Artificial intelligence ought to enhance pensions efficiency by reducing prices and highlighting upcoming dangers, the Mercer CFA Institute’s international pension index report mentioned. Netherlands grabbed the highest spot on this yr’s index.
Additional makes use of for AI might embody constructing customised portfolios and figuring out market anomalies, though AI was unlikely to have the ability to predict market actions with accuracy so uncertainty will stay, information company Reuters reported citing the index findings.
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“The ongoing expansion of AI within the operations and decisions of investment managers could lead to more efficient and better-informed decision-making processes, which could potentially lead to higher real investment returns to pension plan members,” mentioned David Knox, senior associate at Mercer.
The annual survey, which is sponsored by the CFA Institute affiliation of funding professionals in collaboration with Mercer and the Monash Centre for Financial Studies, additionally pointed to dangers of AI fashions producing faux info when utilized in a brand new context, and of cyber assaults towards pension members’ knowledge.
In 2022, India noticed a rise in its total index worth, rising from 44.5 to 45.9 within the fifteenth annual Mercer CFA Institute Global Pension Index (MCGPI). This enchancment, notably within the adequacy and sustainability sub-indices, contributed to India’s rank of 45 out of the 47 retirement revenue programs assessed.
The Global Pension Index employs a weighted common of adequacy, sustainability, and integrity sub-indices, evaluating every retirement system primarily based on over 50 indicators.
According to the report, India’s retirement revenue system consists of an worker pension scheme tied to earnings, an outlined contribution (DC) worker provident fund (EPFO), and predominantly outlined contribution supplementary employer-managed pension schemes.
The Netherlands scored high marks within the survey of 47 pension programs world wide for the extent of personal and public sector pension advantages accessible, the sustainability of the system to final a long time into the longer term and the standard of its governance, knocking Iceland off final yr’s high place.
Iceland got here second and Denmark third within the 2023 index.
