Canada is not immune to the retirement and pension issues facing all facets of society and prepare with future investment planning, according to a report released today by State Street Corp.

The firm’s Pension Vision Report suggests that although pension savings have doubled in the 10 years leading up to 2006, to $24 trillion, the world’s total retirement liabilities are estimated to be six times that, at approximately $163 trillion.

The paper is the fourth in the series from State Street. It is essentially an overview of retirement provision globally and pinpoints major areas of growth and opportunity in both defined benefit and defined contribution markets. The report covers the relationship between plan sponsors, governments and participants. As well, it looks at the incorporation of absolute return investing in pension plan strategies.

“Retirement and pensions are set to become two of the greatest issues facing society in the 21st century,” said Jay Hooley, vice chairman of State Street. “This report will increase pension plans’ and investment professionals’ understanding of global trends, providing them with the necessary insight to align their business plans accordingly.”

According to State Street, employer-related retirement plans have been one of the great financial success stories. However, it notes that “sensible” reform is necessary in order to increase the number of plans and maintain benefits for companies and their employees. “Governments, social partners and the financial services industry still need to do a lot to boost private provision,” reads the report.

As well, it says that the costs and difficulties associated with defined benefit (DB) programs mean that providers are closing to new members. The future belongs to defined contribution (DC) plans, it adds. “This leaves a huge responsibility on the designers, managers and regulators of DC plans,” it reads.

Most importantly, however, the State Street paper puts the onus on governments to develop policies that ensure retirement funds will be sufficient. “The challenge of reform begins with governments, which must be more transparent about reforms ahead,” reads the report. “Especially the need for greater sharing of the cost of retirement.”