Canadian retirement system scores B as aging crisis reshapes global pension outlook
“Pension systems are under real strain,” said Christine Mahoney, Global Defined Benefit and Defined Contribution Leader at Marsh People and Investments. “Governments that clarify their pension objectives, strengthen funding, and build flexibility into retirement design will be far better positioned to deliver dignified, secure retirements for the generations ahead.”
Where Canada stands – and what holds it back
Canada’s B grade places it in the same tier as Switzerland, the United Kingdom, New Zealand, Hong Kong SAR, and France; systems with sound structures and many strong features, but with meaningful areas for improvement that separate them from the A-grade tier.
The six systems receiving an A grade in 2026 were the Netherlands (85.8), Denmark (84.1), Iceland (84.0), Singapore (82.0), Israel (81.9), and Australia (80.6), which broke into the top tier for the first time this year.
Canada’s core structural challenge has remained consistent across multiple editions of the index: limited occupational pension coverage in the private sector.
Many Canadians employed outside the public sector, including self-employed individuals, gig workers, and employees at small and medium-sized businesses, have no access to a workplace retirement savings plan. Without an element of compulsion or automatic enrolment, the index notes, many individuals will not save adequately for the future.
