More Canadians save, but many worry if they’re on target

Retirement savings in Canada offers us a good news, bad news story, writes Jim Wilson for Canadian HR Reporter.

Wilson reports that a recent Edward Jones Canada survey’s results suggest that Canadians “remain confused, anxious, and unprepared for life after work,” despite the fact that more of us are saving and joining workplace pension programs.

Of the 70 per cent of survey respondents who reported “negative emotions” about retirement savings, “40 per cent say they feel confused, 37 per cent are unsure they are maximizing their registered retirement savings plan (RRSP) opportunities, and 36 per cent are worried they are not contributing enough for a financially secure retirement,” Wilson writes.

The survey, he continues, uncovered a gap in knowledge about “retirement mechanics.”

“Fewer than six in 10 (56 per cent) of respondents understand the value of tax deductions and 55 per cent grasp the tax implications of withdrawals. Only 53 per cent feel confident about what happens when an RRSP matures, while 66 per cent say they understand the annual contribution deadline,” the article explains.

“What we’re seeing is a generation that knows they need to save for retirement but lacks the confidence that they’re doing it right,” Edward Jones Canada’s Julie Petrera tells Canadian HR Reporter.

The survey found that more Canadians (41 per cent versus 39 per cent) planned to contribute to RRSPs this year, with 15 per cent intending “to contribute the maximum,” Wilson reports. While nine per cent said they couldn’t afford to contribute, that’s better than the previous year, where 10 per cent said they wouldn’t, the article adds.

Wilson’s article then takes a look at some pension plan participation numbers from the Financial Services Regulatory Authority of Ontario (FSRA).

“In Ontario, workplace pension membership increased by more than 200,000 people in 2025, an average of 549 new members per day compared with 2024, according to data from the Financial Services Regulatory Authority of Ontario (FSRA),” the article reports.

“From those numbers, more than 175,000 people joined defined benefit (DB) plans (up six per cent) and more than 58,000 joined defined contribution (DC) plans (up nine per cent),” Wilson notes.

(In a DB plan, the benefit – or payout – is what’s “defined” by a formula that usually looks at your earnings and years of service in the plan. With DC, what is “defined” is how much money you (and sometimes your employer) contribute; your payout is based on how well the money has been invested when you apply to collect it.)

However, that good news is tempered a bit by the fact that the FSRA research found “that eight in 10 respondents have not fully developed a retirement plan and 66 per cent have not calculated how much money they will need in retirement,” Wilson reports.

“One in two cannot recall the last time they spoke to someone about saving, and 50 per cent of pension members do not read their annual pension statement, based on a survey of 1,000 adult Ontarians conducted in 2024,” he adds.

The article concludes by going over some of the steps HR departments can take to help employees on their retirement journey, particularly in starting the conversation about the retirement program early.

If you don’t offer a workplace pension program for your team, the Saskatchewan Pension Plan may be just what you’ve been looking for to attract and retain top talent.

Employers can choose to offer SPP to their employees – several options are available (Pensions Plans for Businesses | Employee Pension Plans). In all cases, the bulk of the administrative work, such as delivering annual statements and tax slips, is handled directly by SPP.

SPP is also a great “do it yourself” savings program for those among us who don’t have a workplace pension program.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Blurring the lines between work and retirement

It wasn’t that long ago that retirement was something that occurred to everyone at a certain age, typically 65. That was when you basically had to retire from your job, and that magic age was – not surprisingly – the same age where government and company pension benefits were designed to start.

But things these days are much different, writes Jim Wilson in Canadian HR Reporter. The lines between the workforce and the retiree population are blurring, and it may be retirees who have to pick up the slack in the labour market.

The problem, he writes, is the “Great Resignation,” where employees are “changing their jobs or careers amid the upheaval of the pandemic.” Retirees, he explains – as well as the semi-retired – may need to be tapped to take on those unfilled jobs.

He cites a recent survey by Express Employment Professionals that found 79 per cent of respondents wanting “to partake in semi-retirement by having a flexible work schedule,” or by being a consultant (62 per cent) or “working reduced hours with reduced benefits” (52 per cent).

That’s a big difference from the old days, when retirements occurred at a fixed date, Express spokesperson Hanif Hemani tells Canadian HR Reporter.

“There’s also been a bit of an attitudinal change amongst baby boomers that are retiring where they want a little bit more out of life; they feel like they still have a few good years to offer. And so this concept of semi-retirement is basically bridging these individuals from their traditional work and phasing them into retirement, rather than having a set end date when they’ll be gone,” Hemani states in the article.

Another interesting finding the story mentions is that 18 per cent of workers over 50 (this number comes from RBC) want to “push out their retirement date.” But, the article adds, only 22 per cent of employees say their employer even offers the option of semi-retirement.

So without a lot of formal “semi-retirement” programs in the workplace, the article notes, employers are doing things like “bringing retired employees back, either to be a knowledge expert (21 per cent), act as a mentor to current employees (16 per cent) or handle key client relationships (14 per cent).

The article concludes by suggesting employees have a chat with older employees – maybe two years before they plan to retire – to see what “retirement looks like” for them. Could it include part time post-retirement work, or consulting?

The idea of “phased retirement” is something that has been kicked around in the pension industry for years. The concept was fairly simple to explain – you might work 80 per cent of your previous hours and draw part of your pension (20 per cent) at the same time. Then, in a few years, maybe you move to 50-50, and then to 20 per cent work and 80 per cent retirement, and finally, full retirement.

The concept sounds simple but it would be an administrative headache for any pension plan. As well, you would probably need to have government pensions permit the same thing, and maybe registered retirement savings plans as well. A lot of legislation and administrative work. But perhaps the old idea needs to be dusted off and looked at with fresh eyes, given the new realities of 2022.

If you have been saving on your own for retirement, there’s a great program out there that’s been designed with people like you in mind. The Saskatchewan Pension Plan is an open defined contribution pension plan that individuals can join. Once you’re a member, you decide how much you want to contribute, and SPP handles the tricky parts of investing, and turning the investments into retirement income. Check them out today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Boomers don’t think they’ll have enough – but aren’t aware of potential healthcare costs in retirement

It’s often said that if you don’t have a workplace pension plan, you will have to fall back on the “safety net” of the Canada Pension Plan (CPP), Old Age Security (OAS) and the Guaranteed Income Supplement (GIS). You’ll be able to augment those benefits with your own Registered Retirement Savings Plan (RRSP) nest egg, the party line suggests.

But new research from HomeEquity Bank and Ipsos, reported on by The Suburban, finds that 79 per cent of Canadians 55 and older “say they can’t bank on RRSPs, the CPP and OAS for a comfortable retirement.”

In short, they don’t think those sources will provide them with as much income as they want.

The survey goes on to note that “four in 10” of the same over-55 group think they may have to “access alternative lending options for their retirement planning toolboxes,” including accessing the equity in their homes via a reverse mortgage.

Traditionally, the article notes, older folks would “downsize” the family home, selling it and buying something smaller and/or cheaper. “That’s long been considered the right thing to do,” the article tells us.

However, states HomeEquity CEO Steven Ranson in the article, “downsizing isn’t as attractive as it used to be. Given the amount of risk associated with moving and finding another suitable home, more than a quarter of older homeowners are considering accessing the equity in their homes instead of selling to help fund their retirements.”

What could be behind this concern over retirement income?

One possibility is the possibility of expensive post-retirement healthcare costs, suggests an article in Canadian HR Reporter.

The magazine cites research from Edward Jones as saying that “66 per cent (of Canadians 55+) admit to having limited or no understanding of the health and long-term care options and costs they should be saving for to live well in retirement.” The article says that the cost of a private nursing home room – on average, in Canada – is a whopping $33,349 per year.

While not all of us wind up in long-term care, one might assume that you want to make sure you still have a little money set aside for that possibility – right?

The Edward Jones survey found that 23 per cent of those surveyed feel their retirement savings will last them only about 10 years, the article notes. Thirty-one per cent don’t know how long their savings will last, the article adds.

This is a lot to take in, but here’s what the survey results seem to tell us. Boomers worry they won’t have enough money in retirement – and many aren’t aware of the huge cost of long-term care late in life. Perhaps those who are aware of long-term care costs are realizing they might run short in their 80s or beyond?

So what to do about this? First, if you can join a pension plan at work, do. Often, your employer matches your contributions, and the income you’ll receive in retirement is worth a small sacrifice in the present.

No pension plan to join at work? No problem – the Saskatchewan Pension Plan has all the retirement tools you need. For 35 years they’ve delivered retirement security by professionally investing the contributions of members, and then providing retirement income – including the possibility of a lifetime annuity – when those members get the gold watch. Check them out today.

Join the Wealthcare Revolution – follow SPP on Facebook!