The report released by international consulting firm Mercer noted that while the public- and private-sector pillars of the Canadian system are strong compared with many other countries, the system could be improved in several ways.

The report says Canada should increase the level of coverage of employees in occupational plans, find a way to ensure that voluntary retirement savings aren't spent before retirement, raise the level of household savings and increase the pension age as life expectancy increases.

Canada was given a B grade overall for its pension system, behind the Netherlands, Australia and Sweden. Britain, the United States, Chile and Singapore received a C, while Germany, China and Japan received a D.

The adequacy of Canada's pension system was rated at 76.2 out of 100, its sustainability at 64.2 and its integrity was rated 80.9, according to Mercer's index.