Six in 10 (59 per cent) Canadians with an employer-sponsored pension plan say they feel somewhat or very well prepared for retirement, compared to only 34 per cent of respondents without a workplace pension plan, according to a new survey by the Healthcare of Ontario Pension Plan.
The survey, which polled 2,000 Canadian employees, found fewer than a third (29 per cent) of respondents with a workplace pension said they have less than $5,000 in savings, compared to nearly half (48 per cent) of those without one. Nearly 70 per cent of respondents said they’d be willing to have a slightly lower salary and any — or a better — pension than a higher salary and no — or a worse — pension.
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Half (49 per cent) of Canadians said they haven’t set aside any retirement savings in the last year. Nearly two-fifths (39 per cent) of unretired Canadians aged 55 to 64 said they have less than $5,000 in savings.
As well, nearly three-quarters (73 per cent) of respondents said they agree there’s an emerging retirement income crisis, up from 69 per cent in 2023. More than half (57 per cent) of Canadians said they don’t feel ready for retirement right now and a quarter (26 per cent) of said they plan to continue working in retirement to afford their lifestyle costs.
A majority said all workers should have access to an affordable retirement savings arrangement (88 per cent) and that it’s in everyone’s interest for more people to have better retirement savings (86 per cent). Eight in 10 agreed companies have a responsibility to offer a pension plan that workers can access for adequate income in retirement (81 per cent), that pensions are fuel for tomorrow’s economy (78 per cent) and that if workers aren’t able to access good workplace pensions and contribute during their working lives, they will become a burden on taxpayers (75 per cent).
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The survey also found more than half (53 per cent) of Canadian women said they haven’t set aside any retirement savings in the last year and nearly two-thirds (62 per cent) of unretired women aged 55 to 64 feel unprepared for retirement, compared to fewer than half (48 per cent) of unretired men. Notably, more than two-thirds (36 per cent) of women aged 55 to 64 said they don’t have any savings at all.
However, half (49 per cent) of unretired women with a pension said they feel prepared for retirement, compared to just 29 per cent without a pension. Among men, two-thirds (66 per cent) with a pension said they feel prepared, compared to 40 per cent without.
“We’ve heard consistently that Canadians are struggling to save for retirement. . . . What was particularly noteworthy for us with this research is the impact that it has on women,” says Ivana Zanardo, head of plan services at the HOOPP. “Although not surprising, [it’s] disheartening that this continues to be a challenge for Canadians and women in particular.”
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