Canada ranks 12th out of 43 countries for its pension system, according to a new report by Mercer and the CFA Institute.

The countries in the report were ranked on the adequacy and integrity of their pension systems and the sustainability of pension investments. Overall, Canada received a grade of 69.8 — 8.8 points above the average score.

The report also listed several recommendations for Canada’s pension system, including the suggestion that Canada increase the coverage of employees in occupational pensions through the adoption of pensions that wouldn’t rely on employer sponsorship.

Read: Canada drops to No. 10 in retiree well-being global rankings: report

Like many other countries included on the list, Canada was criticized for its heavy national debt relative to its gross domestic product. In the report, David Knox, a senior partner at Mercer, noted that the debt levels of many nations had climbed as a result of the coronavirus pandemic.

“The impact of the COVID-19 pandemic continues to affect the well-being of millions of individuals around the world. Its effects, however, are not confined to the health systems or those who contract the virus. There are broader economic effects with higher government debt and restricted economic activity in many countries. While it would be easy for governments to concentrate on these short-term challenges, it would be a mistake to do so.”

The top spot was claimed by Iceland in its debut appearance on the list, with the country receiving an overall score of 84.4. Despite the high score, the report’s writers concluded that the Icelandic pension system could be improved by raising the pension age to keep up with increases in life expectancy. With scores of 83.5 and 82, respectively, the Netherlands and Denmark placed second and third.

Read: Canada maintains No. 8 global ranking for retiree well-being: report

Thailand received the lowest overall score, earning a 40.8 grade. The country’s pension system received criticism for failing to provide enough support for the poorest elderly individuals and for governance failures in the private pension system. With an overall grade of 41.5, Argentina placed next-to-last, just behind the Philippines, which received a 42.7 grade.