Canada's Pension System in Global Comparison
A recent global pension index has improved Canada's rating, though it highlights significant potential for enhancement, especially regarding workplace pensions.
Overall Score and Grade
Canada received a grade of B in the Mercer CFA Global Institute Pension Index 2025, maintaining last year's grade but increasing its score from 68.4 to 70.4 out of 100.
Diversified Sources of Retirement Income
Hubert Tremblay, partner and senior wealth adviser at Mercer Canada, emphasized the strength of Canada's pension framework:
“One of the main strands of the Canadian pension system is that we have a diversified system with multiple sources of income into retirement.”
Components Assessed by Mercer
- Canada Pension Plan (CPP)
- Income supplement programs such as Old Age Security (OAS) and the Guaranteed Income Supplement (GIS)
- Workplace private pension plans
- Voluntary retirement savings including registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs)
These elements were analyzed to evaluate the overall effectiveness of Canada's pension system.
Subscription Note
Readers are invited to sign up for business news and market updates, with confirmation emails sent upon registration.
Canada shows a solid yet improvable pension system that relies on a balanced mix of public and private retirement income sources.