Canada’s pension system is the tenth most stable system in the world.
(7 Nov. 2011) – A recent study by Allianz Global Investors of 44 pension systems around the globe ranks Canada in 10th place – behind Australia, Sweden, Denmark, New Zealand, Netherlands, Norway, Hong Kong, Finland and Switzerland. The U.S.’s pension system ranked 17th.
Pension systems were assessed based on current and future demographics, public finances, key features of the system and reforms already in place.
According to the report, Canada's pension systen is sustainable because of the relatively low level of benefits from the first-pillar of Canada’s pension system (Old Age Security and the Guaranteed Income Supplement) as well as a moderate aging trend that is not expected to stretch public finances.
“Taking all sub-indicators into account, Canada compares quite favorably with most of western Europe and the wider range of countries considered in this study,” says the report.
Australia’s pension system was ranked as the most sustainable, thanks to well-balanced old-age provisioning structures, favourable demographics and well-managed public finances.
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