How Canada’s Pension System Ranks Globally
The latest Mercer CFA Global Institute Pension Index 2025 raised Canada's score to 70.4 out of 100, up from 68.4 last year. Despite this improvement, the country's overall grade remained a B, suggesting there is still room for growth, particularly in workplace pensions.
“One of the main strengths of the Canadian pension system is that we have a diversified structure with multiple sources of income for retirement,” said Hubert Tremblay, partner and senior wealth adviser at Mercer Canada.
Mercer’s evaluation considered various elements of Canada’s retirement framework, including:
- Canada Pension Plan (CPP)
- Old Age Security (OAS) and the Guaranteed Income Supplement (GIS)
- Workplace private pension plans
- Voluntary retirement savings accounts such as RRSPs and tax-free savings accounts (TFSAs)
These combined programs form a wide-ranging system designed to support Canadians throughout retirement, though experts highlight the need to enhance workplace coverage.
Author’s Summary
Canada’s pension system improved slightly in the global index, but experts say stronger workplace pension participation is essential for long-term stability.