Canada's Pension System Performance in Global Index
Canada's pension system improved in a global ranking but continues to show significant potential for enhancement, particularly in workplace pension plans. The Mercer CFA Global Institute Pension Index 2025 awarded Canada a grade of B, maintaining the previous year's rating but increasing its score to 70.4 out of 100 from 68.4.
Key Features of the Canadian Pension System
Hubert Tremblay, partner and senior wealth adviser at Mercer Canada, highlighted the strength of Canada's diversified retirement 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.”
- 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)
Assessment Focus
Mercer’s evaluation considered both public and private retirement income streams to gauge the system's overall health and effectiveness.
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Author's summary: Canada's pension system is rated B globally, showing modest improvement but highlighting a need for stronger workplace pension development to ensure retirement income security.