“While Canada’s retirement system continues to rank well globally, there are risks that employers and employees need to manage in the current environment,” said F. Hubert Tremblay, principal and senior wealth advisor with Mercer Canada. “As DC pension plans continue to make up a-greater part of Canadians retirement, turbulent markets, soaring inflation and a higher cost of living are all impacting older workers that are transitioning to full or part-time retirement.”
Tremblay added that employers can help their teams prepare for retirement by providing and promoting financial wellness tools at all stages of their careers.
“The retirement industry also needs to support workers transitioning into retirement by providing good options to convert accumulated assets into retirement income, low investment fees, and helping future retirees understand how the Canada/Québec Pension Plans can be leveraged to deal with investment and longevity risks,” he said.
Who ranks number one?
While the Canadian system is stable and among the top third of the systems ranked, it is beaten by 12 countries including Australia, the UK, Norway, Israel, and Uruguay.
