Canada earns an overall B grade in the Mercer CFA Institute Global Pension Index 2025, placing mid-pack among 52 countries
December 01, 2025
Canada earns an overall B grade in the Mercer CFA Institute Global Pension Index 2025, placing mid-pack among 52 countries.
The annual Index, which covers 52 retirement systems globally, representing around 65% of the world’s population, awards an overall score based on weighted ratings for the adequacy, sustainability and integrity of its retirement system. A B grade is described as “A system that has a sound structure, with many good features, but has some areas for improvement that differentiates it from an A-grade system”.
Canada’s score of 70.4 out of 100 was an improvement on its 2024 ranking, when it earned a score of 68.4. This increase is primarily due to a new question in the sustainability sub-index, updated economic growth published by the International Monetary Fund, and clarification of the protection of benefits from fraud and mismanagement. However, it still fell well behind the Netherlands, which was the top performer at 85.4 – one of five countries achieving an overall A grade (the others were Israel, Denmark, Iceland and Singapore).
The report suggests Canada could boost its score in future by:
- Increasing the coverage of employees in occupational pension schemes, mainly in the private sector, through the development of an attractive product for those without an employer-sponsored scheme.
- Increasing the labour force participation rate at older ages.
- Increasing the level of household savings and reducing the level of household debt; and
- Reducing government debt as a percentage of GDP.
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