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October 27, 2021

Canada's pension system continues to rank high: report

Looking for a good place to retire? Try Holland.

For the second year in a row, the Netherlands obtained the top spot in a ranking of pension systems from around the world, earning a score of 78.3 out of 100.

Canada ranked fifth with a score of 69.9, ahead of the United States, United Kingdom and France, while China ranked worst with a score of 40.3.

The review took into account over 40 factors including the adequacy of private and public pension payments for retirees, and the level of pension incomes compared to what people were making before they left work. 

It also looked at the rate of participation in private sector pension plans, the sustainability pension assets in general, and the quality of government oversight and regulation.

So, what would it take for Canada to become Number 1?  Is it even possible?

Although the Canadian system is strong, there are still several areas where it could be improved, Mercer suggests. Namely,  

* increasing the number of employees in work-related pension plans

* ensuring that pension savings are preserved for retirement and not withdrawn early

* increasing the age of eligibility for pensions as life expectancy increases

* boosting the overall level of household savings.

Better still, say experts, all of us should simply save a lot more and work as long as possible.

Does the Canadian pension system seem that great from where you sit? Do you worry, for instance,  about a change in the minimum retirement age?

By Gordon Powers, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...