Canada’s pension fund system ranked 18th on a global pension index of 55 countries, according to Marsh. Hubert Tremblay, a partner and senior wealth adviser at Marsh Canada in Montreal, said the system is strong and pointed to older Canadians working longer as one way to improve it.
“Canada’s retirement system is strong. There’s no doubt about it,” Tremblay said. Canada received a B rating, which translated into a score of 70.6 out of 100. Marsh measured countries on adequacy, sustainability and integrity, the three areas used to compare retirement systems.
Marsh Canada and the B rating
Canada’s score reflected a solid minimum level of financial support for the poorest older Canadians, decent workplace pension coverage and strong pension assets as a share of GDP. Marsh also said Canada has strong regulations and governance around pensions. Those factors helped push the country into the middle of the pack rather than the top tier.
The index put Canada behind the six countries that scored above 80 and earned an A grade. The Netherlands, Denmark and Iceland were among them. Canada scored 67.1 for adequacy, 66.6 for sustainability and 81.7 for integrity, which shows the system is stronger on oversight than on long-term pressure points.
Canada Pension Plan and workplace coverage
Canada’s retirement system includes the Canada Pension Plan, Old Age Security, the Guaranteed Income Supplement and the Quebec Pension Plan. It also includes the Maple Eight pension behemoths and hundreds of private pension plans run by employers. Marsh’s ranking suggests the system’s public supports and private assets can produce a solid baseline without placing Canada among the highest-ranked systems.
Tremblay’s recommendation points to the work force rather than the benefit formulas: if more older Canadians stay in work longer, the system can improve. For readers approaching retirement, the practical takeaway is that the debate now centers on how long people remain employed, how much workplace coverage they have and whether Canada can move closer to the systems that scored above 80.
