A three-tier system — a tax-funded universal pension, a contributory plan backed by one of the world's largest pension funds, and private saving — that spends little as a share of GDP and is among those actuaries consider sustainable.
Key points
- The Canada Pension Plan fund reached $793.3 billion at 31 March 2026.
- Canadian public pensions weigh less than 6% of GDP, half as much as in France — but retirement also relies on 3.5 points of GDP of private pensions.
Citoyen synthesis for the Pensions category in Canada. Anchored on the sector's figures (Statistics Canada, Employment and Social Development Canada, CPP Investments; OECD — SOCX and Pensions at a Glance) and benchmark analyses (Office of the Chief Actuary, Parliamentary Budget Officer). All values are the latest realized observation available — never a forecast. Assessments are kept distinct from sourced facts. Data last updated: November 2026.
1. State of play — where Canadian pensions stand
Moderate public spending. According to the OECD SOCX database, public cash pensions (old age and survivors) amounted to 5.9% of GDP in 2022, plus 3.5 points of private pensions. This scope (cash benefits, public and private kept apart) is not Eurostat's (ESSPROS): the two measures cannot be compared as one. The low public weight reflects a population still slightly younger than Europe's and the role of employer plans.
First tier: Old Age Security. The tax-funded Old Age Security (OAS) pension is paid from 65 according to years of residence, and partly clawed back from high incomes. The Guaranteed Income Supplement (GIS) is added for low-income seniors. Amounts are indexed to inflation every quarter; since July 2022, OAS for people aged 75 and over has been 10% higher.
Second tier: the CPP and the QPP. The Canada Pension Plan (CPP) — and in Quebec, the Quebec Pension Plan (QPP) — is contributory: 5.95% of earnings for both employer and employee up to a ceiling, plus an additional contribution above it. The pension, taken between 60 and 70 with 65 as the reference age, reaches at most $1,507.65 a month at 65 in 2026. The "enhancement" begun in 2019 and completed in 2025 gradually raises the target replacement rate from a quarter to a third of covered earnings. The fund managed by CPP Investments reached $793.3 billion at 31 March 2026, with a net return of 7.8% for the fiscal year, below its reference portfolio (13.2%).
Third tier and labour market exit. Registered employer pension plans (widespread in the public sector), RRSPs and TFSAs complete the system. The effective age of labour market exit was 65.2 for men and 63.2 for women in 2024 (OECD).
Low but uneven poverty among seniors. According to the Canadian Income Survey (Statistics Canada, April 2026), the poverty rate of unattached seniors (Market Basket Measure) fell from 12.5% in 2023 to 11.1% in 2024; for all seniors, the latest published rate was 5.5% in 2023. Seniors living alone, especially women, remain the most exposed.
Canada — Senior employment rate (55-64)
2. Outlook — where pensions are heading
Rapid ageing. Nearly one Canadian in five is 65 or older, and the baby-boom generation is completing its move into retirement. The cost of OAS and the GIS is rising accordingly: the government puts elderly benefits at about $88.8 billion for 2026-2027, a budget estimate.
A contributory plan deemed sustainable. Successive actuarial reports by the Office of the Chief Actuary conclude that the CPP's legislated contribution rate is enough to fund the plan over 75 years, thanks to the fund's investment income — these are projections, sensitive to return and demographic assumptions. Raising the OAS age to 67, legislated in 2012, was reversed in 2016: the age remains 65.
The 5 November 2026 budget. Presented by Finance Minister François-Philippe Champagne, it sets out about $142 billion of new measures over five years; early analyses find no change to OAS or GIS parameters, whose indexation remains automatic. Conflicting demands persist: the seniors' association CARP calls for extending the 10% top-up to 65-74-year-olds, while Generation Squeeze argues for a stronger OAS clawback from well-off retirees to fund other priorities.
Open questions. Three issues frame the debate: (1) targeting OAS, between universality and fairness across generations; (2) governance of the CPP fund, which Ottawa has encouraged to invest more in Canada while its mandate remains maximising returns alone; (3) coverage of private-sector employees without an employer plan.
3. International comparison — Canada among its peers
Canada shares with the United Kingdom and the United States a modest basic public pension topped up by workplace saving, but stands out for a large pre-funded contributory plan.
Three takeaways. (1) Among the lowest public spending. According to the OECD (SOCX), Canadian public pensions (5.9% of GDP in 2022) are below those of the United States (7.3% in 2023), the United Kingdom (7.1%) and above all France (13.4%); among these countries, only Australia spends clearly less (3.4%).
(2) A substantial private side. At 3.5 points of GDP, private pensions put Canada behind Australia (4.5) and the United States (5.7), but ahead of the United Kingdom (2.9), Japan (2.7 in 2021) and France (0.3).
(3) A marked gender gap at exit. Canadian women leave the labour market two years before men (63.2 against 65.2 in 2024, OECD), a wider gap than in the United States or Australia.
International comparison — pensions
| Country | Public pensions (% GDP) | Private pensions (% GDP) | Exit age M / W (2024) |
|---|---|---|---|
| France | 13.4% (2022) | 0.3% | 61.9 / 62.4 |
| Japan | 9.4% (2021) | 2.7% | 66.9 / 67.4 |
| United States | 7.3% (2023) | 5.7% (2022) | 67.3 / 66.7 |
| United Kingdom | 7.1% (2022) | 2.9% | 63.8 / 63.1 |
| Australia | 3.4% (2022) | 4.5% | 64.9 / 64.4 |
| Canada | 5.9% (2022) | 3.5% | 65.2 / 63.2 |
Sources: OECD — SOCX database (old-age and survivors cash pensions, public and private kept apart, latest year available); OECD — Pensions at a Glance (average effective age of labour market exit, 2024). Scope distinct from Eurostat ESSPROS data.
Data used (data journalism base)
Show the table
| Data | Value | Source |
|---|---|---|
| Public pensions (old age + survivors, cash) | 5.9% of GDP (2022) | OECD SOCX (Citoyen card) |
| Private pensions | 3.5% of GDP (2022) | OECD SOCX (Citoyen card) |
| Effective exit age (men / women) | 65.2 / 63.2 years (2024) | OECD (Citoyen card) |
| Maximum CPP pension at 65 | $1,507.65/month (2026) | Government of Canada |
| CPP net assets | $793.3bn (31 March 2026) | CPP Investments |
| Poverty, unattached seniors (MBM) | 11.1% (2024) | Statistics Canada (CIS) |
| Poverty, all seniors (MBM) | 5.5% (2023) | Statistics Canada (CIS) |
Sources (national analyses and references)
Statistics Canada (Canadian Income Survey 2024, April 2026) · Employment and Social Development Canada (OAS, GIS, CPP) · CPP Investments (fiscal 2026 results) · Office of the Chief Actuary (CPP actuarial reports) · Department of Finance (Budget 2026, 5 November 2026) · Retraite Québec (QPP) · CARP · Generation Squeeze · OECD (SOCX, Pensions at a Glance).
Methodological note — the synthesis distinguishes sourced facts from assessments, stays neutral, dates every figure and does not extrapolate beyond its sources. Spending comparisons rely on the OECD SOCX database (cash benefits), not to be confused with Eurostat ESSPROS data. Actuarial conclusions and budget estimates are projections, presented as such. Same safeguards as the rest of the observatory.