Canada 2011

Canada’s retirement income system comprises a universal flat-rate pension, supported by a means-tested income supplement; an earnings-related pension based on revalued lifetime earnings; voluntary occupational pension schemes (many of which are defined benefit schemes); and voluntary individual retirement savings plans.

The following table shows Canada’s position when compared to the 15 other countries and some of the indicators that either scored relatively well or poorly.

The overall index value for the Canadian system could be increased by:

• increasing the coverage of employees in occupational pension schemes, possibly through a more efficient system
• introducing a mechanism to increase the state pension age as life expectancy continues to increase
• increasing the level of household savings
• maintaining the real value of accrued pension benefits from resignation until retirement

The Canadian index value fell slightly from 69.9 in 2010 to 69.1 in 2011 due a small decline in every sub-index.