Canada now sits 12th in the latest global rankings of countries in terms of their ability to provide a secure retirement for citizens.

Paris-based Natixis Global Asset Management released the latest version of its annual Global Retirement Index, which places Canada in 12th spot, up two places from the previous rankings. The index looks at 20 key trends in four categories: health, material well-being, finances and quality of life.

The report indicates that Canada scores well in per-capita healthcare spending and insurance coverage, for the strength of its financial institutions, and in terms of per-capita income and income equality. It also benefits from an economy that performed better than most other developed countries in 2014.

On the downside, the report cautions that significant risks loom on the horizon. “Weaker oil and commodity prices as a result of slow global growth and a further slowdown in the Chinese economy could hit the country’s large commodity sector, and highly indebted households could see consumption fall in the event of an economic or financial shock,” it says.

Additionally, it notes that Canada is set to miss its greenhouse emissions reduction target for 2020 by a “significant margin”, which, it says, “could affect the health and quality of life of retirees in the country and abroad in the years to come.”

“Retirement security is influenced by many factors that are largely out of control of retirees,” says John Hailer, president and CEO for Natixis Global Asset Management in the Americas and Asia. “In Canada, the recent strength of the economy boosted its standing in the world rankings. But individual investors still need to save and invest as effectively as possible to guard against any big economic or policy changes.”

Switzerland remains the top-rated country in the rankings, due to its high per-capita income, strong financial institutions, and environment. Norway ranked second, and Australia was third.

Natixis also notes that Iceland jumped seven slots in this year’s rankings to fourth place because of continued progress in the recovery of its financial system. And, the Netherlands also jumped to fifth place from 13th spot due to its improved financial system.

The firm says that Australia (in third place) and New Zealand (in 10th place) are the two non-European countries in the top 10, “in large part because of mandatory retirement savings programs.”

The U.S. continues to rank 19th. It cores well for its high income and per capita healthcare spending, but suffers due to its relatively large gap in income equality, and a lack of access to doctors and hospital beds compared with citizens in other developed nations.

“While these countries are world leaders, they could come under pressure,” Hailer said. “Their citizens are living longer in retirement, and the cost of financing social programs will continue to rise without some type of reform.”

The report was compiled by Natixis with support from CoreData Research, a UK-based financial research firm.