Canada's Pension System Ranks B in Global Survey
A global pension index has improved Canada’s score but revealed areas needing enhancement, especially in workplace pensions. Canada maintained a grade of B in the 2025 Mercer CFA Global Institute Pension Index, with its score increasing to 70.4 out of 100 from 68.4 last year.
Diversified Sources of Retirement Income
Hubert Tremblay, partner and senior wealth adviser at Mercer Canada, highlighted the strength of Canada’s pension system:
“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 in the Pension Index
Mercer evaluated various parts of Canada’s retirement income framework:
- Canada Pension Plan (CPP)
- Income supplements like Old Age Security (OAS) and Guaranteed Income Supplement (GIS)
- Workplace private pension plans
- Voluntary retirement savings options such as Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs)
Room for Improvement
Despite progress, workplace pensions remain a key area where Canada's system can improve to better secure retiree income.