Canada 2010

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 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;
• ensuring that voluntary retirement savings are preserved for retirement purposes;
• introducing a mechanism to increase the state pension age as life expectancy continues to increase;
• increasing the level of household savings.

The Canadian index value fell from 73.2 in 2009 to 69.9 in 2010 due, in part, to the decline in asset values in 2008 expressed as a percentage of GDP and the increase in government debt, both which were caused by the Global Financial Crisis.