Canada's Pension System Ranking Globally
A global pension index has improved Canada's rating but highlighted significant areas for enhancement, especially in workplace pensions.
Current Assessment and Score
Canada’s pension system maintained a grade of B in the Mercer CFA Global Institute Pension Index 2025, identical to last year’s grade. However, its overall score increased from 68.4 to 70.4 out of 100.
Diversified Income Sources
“One of the main strands of the Canadian pension system is that we have a diversified system with multiple sources of income into retirement.” – Hubert Tremblay, partner and senior wealth adviser at Mercer Canada
Components of the Pension System
- Canada Pension Plan (CPP)
- Income supplement programs such as Old Age Security (OAS)
- Guaranteed Income Supplement (GIS)
- Workplace private pension plans
- Voluntary retirement savings options including registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs)
Conclusion
While Canada’s pension system shows strengths in diversity and income sources, there remains considerable scope for improvement, particularly in employer-sponsored workplace pensions.
Author's summary: Canada's pension system scores well globally due to its diversified structure, yet significant improvements are needed to strengthen workplace pensions and ensure retirement security.