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Work Needed In Canada


Dramatically aging populations, declining birth rates, and a lack of robust retirement systems will see many countries struggle under the burden of providing adequate pensions to their senior citizens without drastic action, says the ‘Melbourne Mercer Global Pension Index (MMGPI),’ which warned governments across the globe to take immediate action. Canada’s position in the ranking remains strong in 8th place. However, there is work to be done to achieve the coveted ‘A Grade,’ only ever held by Denmark and Netherlands. Dr. David Knox, author of the report and a senior partner at Mercer, says the impact of longer life expectancies, combined by global declining birth rates, is much more significant than has been recognized by many governments and communities. “It is a political imperative that all countries, regardless of their size, and current standing on the MMGPI, implement the necessary policy changes to withstand future challenges presented by the globally aging population,” he says. Scott Clausen, a partner in Mercer’s retirement business in Toronto, ON, says “While Canada’s retirement system continues to be one of the stronger retirement systems in the world, there remains a majority of Canadians in the private sector without access to workplace pension plans.” However, he noted the report has not yet recognized the plan to expand the Canada Pension Plan which will help increase retirement benefits for those without an employer-sponsored pension. “While Canada will be affected by the aging of its population, we are in a position to face this challenge,” says Clausen.

Courtesy of Benefits and Pensions Monitor website News Alerts 

 

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