Mar. 9: BEST OF THE BLOGOSPHERE

March 9, 2026

Less than half of us have a workplace pension plan

A new report from IG Wealth Retirement suggests that “less than half of non-retirees in Canada have a workplace pension plan.”

The study’s findings were covered in a recent Canadian Press story authored by Daniel Johnson.

“IG Wealth Management’s annual retirement study said a generational shift is re-shaping how Canadians approach retirement as 48 per cent of non-retirees have a workplace pension plan, whether it be a defined-benefit or defined-contribution plan,” he reports.

A defined benefit plan is the type where what you get in monthly pension payments is what is “defined,” and is based on a benefit formula; the pension plan invests the money to deliver the promised amount. With a defined contribution plan, what you put in via contributions is the part that is “defined,” and what you get in benefits is based on investment returns over time.

Both types of plan are in decline, the article continues.

“The decline of defined benefit and contribution pension plans has fundamentally shifted the burden of retirement planning on to individuals in recent years,” Christine Van Cauwenberghe, head of financial planning at IG Wealth Management, states in the article.

The decline in availability of workplace pension plans has left many of us to save on our own for retirement, the article continues – a shift away from having a plan through work to provide you with a pension.

“Our data shows that while Canadians recognize this shift, many still lack a clear picture of what they need to save – and how to convert their savings into a ‘personal pension plan,'” Van Cauwenberghe states in the article.

Alarmingly, the article continues, the survey found that only “11 per cent of non-retired Canadians say they know how much annual income they will need in retirement, while half say they simply do not know at all.”

Only one-third had “a retirement plan and savings,” the report adds.

Even those, in the minority, with a retirement plan through work were fuzzy on the details, the article adds.

“The survey said about a quarter of employer pension holders didn’t know the details of their plan, including whether it is a defined benefit or defined contribution plan,” the article notes. As well, the report continues, “only four in ten respondents indicated an understanding of Old Age Security, a registered retirement income fund, or the tax implications of retirement income.”

“Few Canadians have accounted for longevity risks to their retirement plan, including inflation, health-care costs and market downturns. About 67 per cent of respondents have not stress-tested their plan for any potential major economic or financial risks,” the article concludes.

There are a few takeaways from this informative article. First, if you are among the lucky few who have access to a retirement program at work, be sure you are signed up and contributing to the max. Often there is an employer match in pension plans which increases your overall contribution.

If you don’t have any such plan, the Saskatchewan Pension Plan may be of assistance. SPP is a voluntary defined contribution plan, open to individuals or groups via an employer.

SPP takes the contributed savings dollars and invests them in our professionally managed, low-cost, pooled fund. SPP also handles all administration, issuing tax receipts before and after retirement, statements showing your progress, newsletters and other communications. This liberates employers offering SPP as their company plan from most of the administration work.

At the end of the day, when it’s time to retire, your SPP options include receiving a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Canadian Press

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