For the second year in a row, the Netherlands obtained the top spot in a ranking of pension systems from around the world.

The Melbourne Mercer Global Pension Index, produced by Mercer for the Australian Centre for Financial Services compares pension systems in 14 countries.

The Netherlands obtained a score of 78.3. Switzerland was ranked second with a score of 75.3, followed by Sweden third with a score of 74.5 and Australia in fourth position with a score of 72.9.

Canada ranked fifth with a score of 69.9, ahead of the United States, United Kingdom and France.

Mercer Partner, Scott Clausen, said that there are several areas in the Canadian system that could be addressed to rank even higher.

The report recommended that Canada’s system could be improved by:

> increasing the coverage of employees in occupational pension plans, possibly through a more efficient system;

> ensuring that voluntary retirement savings are preserved for retirement purposes;

> introducing a mechanism to increase the government pension age of 65 as life expectancy continues to increase; and

> increasing the level of household savings.

Clausen adds that “Public policy makers should continue their focus on increasing pension plan coverage for middle income employees in the private sector.” Currently, the Canadian finance ministers are analyzing two options to reform the Canadian Pension system: a modest expansion of the Canada Pension Plan (CPP) and an efficient private-sector solution.

IE