Canada maintains its B rating and saw its overall score increase in the 2018 Melbourne Mercer Global Pension Index (MMGPI) published Monday.

Canada sits in 10th spot out of 34 in the MMGPI’s rankings of systemic strength that consider 40 indicators in three major areas (adequacy, sustainability and integrity).

Overall Canada’s score rose slightly due to “small improvements” in its scores for all three categories, says global consulting firm Mercer in a news release.

“Canada’s multipillared approach of providing universal government programs, combined with a tax system that promotes voluntary pension and savings programs continues to provide Canadians with a strong retirement system,” says Scott Clausen, partner in Mercer Canada’s wealth business, in a statement.

However, Mercer warns that Canada’s retirement system is facing risks in the years ahead due to a number of factors, including low private sector pension coverage, high and rishing household debt level and increasing healthcare costs as Canadians age, which “will continue to put pressure on unfunded retirement programs in the future, including Old Age Security,” Mercer says.

“Canadian governments are already taking steps to help ensure the workforce will be able to adapt to changing needs with the upcoming enhancements to the Canada and Quebec Pension Plans, but more work needs to be done — organizations, government and employees need to come together to drive the future of work,” says J.P. Provost, senior partner in Mercer Canada’s wealth business.

“Continuing efforts to find attractive retirement options for Canada – including reducing costs, easing plan management responsibilities, providing Canadians with access to better outcomes and reconsidering increasing the eligibility age for public pension plans to reflect increasing life expectancy — should remain an important focus,” Provost adds.

The 2018 MMGPI reveals that the Netherlands as the world’s strongest retirement system, followed by Denmark and Finland, with Australia and Sweden rounding out the top five.

“Ageing populations continue to pose a challenge to governments worldwide, with policy-makers struggling to balance the twin goals of delivering financial security for their retirees that is both adequate for the individual and sustainable for the economy,” Mercer says.

The MMGPI reveals which countries are the most and least prepared to meet this challenge.

The MMGPI is published by the Australian Centre for Financial Studies, in collaboration with Mercer and the State Government of Victoria who provides most of the funding. Financial support has also been provided by The Finnish Centre for Pensions.