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Taking the message

Canadians, according to research, want the kind of retirement security provided by a defined benefit pension plan, and they are willing to pay for it.

Employers also enjoy the benefits of a traditional pension through the recruitment and retention value the model provides. And the stable income delivered to retirees contributes to the economic health of communities, as DB pensioners remain consumers.

Despite these proven benefits, employers, mostly in the private sector, have been moving away from pensions for decades, usually switching to defined contribution schemes or not offering any type of occupational retirement plan at all. Recent data shows that as many as 65 per cent of Canadians don’t have access to a workplace pension.

It’s a conundrum, a problem in search of a solution.