Posthaste: How Canada's Pension System Compares Globally
A new global report has improved Canada's standing in the Mercer CFA Global Institute Pension Index 2025, though experts say there is still room to strengthen workplace pensions.
Canada retained its B grade for the second consecutive year, yet its overall score rose from 68.4 to 70.4 out of 100. The survey compared retirement systems worldwide.
“One of the main strengths of the Canadian pension system is its diversity, providing multiple income sources for retirement,” said Hubert Tremblay, partner and senior wealth adviser at Mercer Canada.
The study evaluated several components of Canada’s retirement framework, including the Canada Pension Plan (CPP), Old Age Security (OAS), the Guaranteed Income Supplement (GIS), employer-sponsored pension schemes, and voluntary savings programs such as RRSPs and tax-free savings accounts.
The findings highlight progress in coverage and system resilience but point to continuing gaps in private sector participation and savings adequacy.
Summary
Canada’s pension system made modest gains in 2025, earning a B grade as experts call for stronger workplace and private retirement options to ensure long-term stability.