Jun. 29: BEST OF THE BLOGOSPHERE

June 29, 2026

Fixing the `wobbly leg’ of the retirement stool – workplace pension access

Writing in The Globe and Mail, Meera Raman notes that one of the legs of the “three-legged stool” of retirement – workplace savings – is a bit wobbly these days.

The idea, she explains, is that workplace savings, along with the other two “legs,” which are government savings and personal savings, are traditionally expected to support the retirement income needs of Canadians.

However, she continues, workplace pension programs are “one of the shakier legs of the stool,” thanks chiefly to the fact that so many people today don’t have such coverage.

“More than nine million Canadians don’t have access to a workplace retirement plan, and the gap is especially noticeable at small and medium-sized businesses,” she writes. “Fewer than one in five Canadian employers with five to 499 employees offer any kind of retirement benefit, according to a March report from the C.D. Howe Institute. In the United States, nearly half do,” she adds.

Despite what she describes as a “strong public pension foundation,” the lack of workplace retirement coverage here “is one major reason Canada finished just 16^th out of 52 countries in the 2025 Global Pension Index.”

The lack of a workplace pension puts a strain on Canadians, she writes.

“Without workplace savings, retirees have to rely more on personal savings, which can be unreliable because of inconsistent contributions and the ability to draw down on accounts more easily,” she reports.

So why don’t more small employers offer retirement programs to their team members?

“The C.D. Howe Institute says one of the biggest reasons smaller employers don’t offer plans is cost. Setting them up and managing them can be expensive and complicated for businesses without large HR departments or benefits teams,” she notes.

The article notes that major insurance companies, such as Sun Life, are designing lower-cost pension program options for smaller employers. (The Saskatchewan Pension Plan, we should add, also offers pension plans designed for employers (Pensions Plans for Businesses | Employee Pension Plans) where the lion’s share of administrative work is carried out by SPP.

There’s a benefit for employers that offer pension programs, the article continues.

“A poll commissioned by Sun Life found more than a quarter of working Canadians say financial stress is hurting their productivity and engagement at work. Another 87 per cent said employers that help workers save earn greater loyalty from staff,” writes Raman.

The article concludes by noting that the C.D. Howe Institute is suggesting policy changes to encourage smaller employers to offer pension plans.

“In a recent report, the think tank proposed a tax credit with two parts: one to help cover startup costs, and another to help subsidize employer contributions,” she concludes.

There’s little question that having a workplace pension plan helps employers attract and retain employees.

The Saskatchewan Pension Plan is open to individuals or employers looking to offer a workplace plan. SPP’s role is to professionally invest all contributions received in our low-cost, pooled fund.

At retirement, a member’s options include the security of a lifetime monthly annuity payment or the flexibility of the Variable Benefit.

Check out SPP today!

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