Retirees are being challenged by inflation and interest rates.
Canada's pension system received an improved score in a global annual ranking, but still fell to 13th spot.
The Netherlands came in second with an index value of 84.6, followed by the Netherlands and then the Danes.
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Canada's B-level rating remained the same as in the previous year, with an overall score of 70.6.
Thailand was the lowest ranked country in the ranking.
The report warned that inflation and rising interest rates are making it difficult for retirees. The payouts on DC plans are based on market performance, while the payouts onDB plans are often linked to inflation.
"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."
There are risks that employers and employees need to be aware of in the current environment.
65 percent of the world's population is covered by the Mercer-CFA index.
It compares retirement income systems around the world and suggests ways to provide more adequate and sustainable retirement benefits.
Bshecter@nationalpost.com is the email address.
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