Canada’s retirement income system ranked No. 24 out of 52 countries, earning a B grade with an overall score of 70.4 out of 100, according to a new report by Mercer and the CFA Institute.
The annual study benchmarks retirement income systems across 65 per cent of the world’s population, using weighted scores for adequacy, sustainability and integrity. This year’s index also outlined eight guiding principles for how governments can balance retirees’ needs with broader national interests.
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Canada’s score was relatively flat compared to 2024, when it also received a B grade, highlighting continued strength in integrity (80.2) but ongoing challenges in adequacy (67.2) and sustainability (67.0).
The Netherlands (85.4), Iceland (84.0), Denmark (82.3), Singapore (80.8) and Israel (80.3) received top A grades, with Singapore becoming the first Asian country to reach that level. The report also noted Finland, Iceland and Kuwait achieved the highest scores in integrity, sustainability and adequacy, respectively.
Strikingly, eight retirement income systems improved their grades this year while none were downgraded, an encouraging trend as retirement income provision improves globally amid aging populations and declining birth rates.
However, Tim Jenkins, partner at Mercer, said in a press release that pension systems with fewer restrictions tend to perform better. “Instead of imposing mandates, governments can focus on transparency, sound governance and collaboration with the private sector.”
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