Many workers nearing retirement—especially women—don’t have enough saved amid rising costs of living and housing anxiety. Despite inflationary pressures, workers remain willing to pay for a pension. Conversely, employers are generally in a stronger position as the labour market softens, with confidence growing in profitability and high growth.

Darryl Mabini, assistant vice president, pension advocacy and research, and Nida Iqbal, market research advisor from the Healthcare of Ontario Pension Plan (HOOPP), shared the results from HOOPP’s Canadian Retirement Study and the Canadian Employer Pension Survey.

Canadian Retirement Study

The Canadian Retirement Study examines the retirement savings behaviour of Canadians with the current economic environment as well as any societal, personal or economic issues that may be impacting their retirement security. The findings are based on a survey conducted online with 2,000 Canadians age 18 and over from April 12 to 16, 2024. The margin of error for this survey is 2.19%. The focus was on gender disparity.

Key Findings:

1. Persistent high interest rates and a rising cost of living continue to have a significant negative impact on Canadians’ ability to save and manage the cost of daily life.

The survey results showed that 70% of Canadians surveyed were concerned with the cost of living and 63% were concerned with keeping up with inflation. Having enough money in retirement is one of the top five concerns for Canadians, tied at 58% with house affordability.

Since 2020, the cost of living is up 15%, income keeping with inflation is up by 14% and having money saved for retirement is up by 9% since 2021. One in four unretired Canadians expect to continue working in retirement to support themselves. (Unretired was defined as anyone working part-time, working full-time, or not working for reasons other than retirement. Semi- or fully retired individuals were excluded from the data.)

Homeownership has an interesting tie into how Canadians feel about their retirement. Eighty-five percent of nonhomeowners are concerned with the increased cost of rent, and 63% are concerned by how interest rates could affect their ability to buy a home.

Additionally, 55% of homeowners were concerned interest rates could negatively impact prospective buyers interested in the homeowners’ property. Fifty-two percent were concerned about paying their current or future mortgage due to the interest rates. Almost half of unretired Canadian homeowners were worried about their ability to pay off their mortgages as they approach retirement. Forty-two percent of Canadian homeowners are relying on the sale of their home to fund their retirement.

2. While all Canadians are struggling, women are especially burdened by lower savings and higher levels of financial stress.

The survey data showed that four in ten Canadians have less than $5,000 in savings, with almost a quarter having no savings at all. Further breakdown by gender reveals half of Canadian women have less than $5,000 in savings, and almost a third no savings at all. One of the reasons women have less in savings is due to not having enough money coming in to savings. While 48% of men indicated they have enough coming into savings, only 36% of women indicated the same.

Subsequently, women are significantly more likely than men to be concerned about affordability, income and finance. Financial stress has an impact on mental health. The data revealed almost one in two women are concerned about their mental health. While women prioritize their day-to-day living for their family, men prioritize saving for retirement.

3. Pensions make saving for retirement more efficient.

How do pensions come into play? Pensions help regardless of gender. Individuals with pensions feel better prepared for retirement than those who do not have a pension at all. As the survey showed, most Canadians are willing to pay for pensions. According to the data, 70% of Canadians would rather choose to have a lower salary but any or better pension compared to only 30% whom would choose a higher salary. Analyzing this data further, women have a higher preference for pensions.

Canadian Employer Pension Survey

The Canadian Employer Pension Survey draws a picture of what Canadian employers are saying and how business is impacted under the economic climate and state of retirement security in Canada. The data also reflects the impact of offering retirement benefits to their employees on recruitment, retention, productivity and well-being. The survey was conducted with 759 employers with at least 20 employees. The margin of error is 3.5%. The participants included business owners, HR decision makers and senior leaders.

Key Findings:

1. Most employers feel optimistic about the productivity of their business and employees in the year ahead.

Eighty-two percent of employers surveyed were optimistic about the year ahead. Seventy-nine percent of employers were optimistic about business competitiveness, and 77% were optimistic about employee productivity.

Among the top concerns for employers, 78% indicated they were negatively impacted by inflation, followed by employee burnout at 68% and greater competition for hiring employees at 63%. Sixty-two percent of employers are concerned with a labour shortage; according to HOOPP, labour-related factors are not disappearing anytime soon.

Employers who reported worse-than-usual employee productivity in the past year were more likely to state their organization was negatively impacted by employee burnout. Interest rates also had a significant impact on employers, as 60% indicated a negative impact from interest rates. Thirty-seven percent of employers stated their business would continue to be negatively impacted—even if the policy interest rates were to drop to 3.5%, compared to the 4.5% interest rate when the survey was administered.

2. Employers who invested in benefits in the past year are more likely to report better employee productivity.

Forty percent of employers who introduced or improved retirement benefits in the past year reported a positive impact on their employee productivity, compared to 27% of employers who do not offer retirement benefits.

Forty-seven percent of employers reported their productivity was very good or excellent, which was a 10% decrease from 2023. This may reflect a decline in the quality of productivity some employers may be experiencing.

Forty-two percent of employers who introduced or improved retirement benefits in the past year indicated productivity was better than normal, compared to 28% of those that increased employee compensation. Only 12% of employers who did not invest in their employees at all indicated the productivity of employees was better than normal.

When employers were asked about the Canadian productivity crisis, 72% agreed the Canadian economy is currently facing a productivity crisis. Nine out of ten employers reported their business’ productivity is dependent upon employee productivity.

3. Nearly two-thirds of employers say companies could afford to offer workers good pensions if they wanted.

The data showed 65% of employers would choose a higher salary compared to lower or no quality pension, which reflects a disconnect from what the data of the Canadian Retirement Survey showed. The top three benefits of offering retirement benefit packages included retention, recruitment and alleviating financial stress.

Sixty-three percent of employers indicated that regardless of economic condition, companies could afford to offer good pensions if they wanted to. Further analysis found 41% of those who do not offer retirement benefits also agree that, no matter the economic conditions, companies could offer quality pensions.

Eighty-six percent of employers surveyed stated there is an emerging retirement income crisis. Eighty-four percent indicated that without good pensions in place, the economy would suffer, and 66% of employers indicated that retirement benefits keep them more productive at work. Most employers recognize the societal value of pensions and the important role employers play in ensuring their employees are well positioned for retirement.

Employers who invest in benefits are more likely to report better employee productivity, subsequently improving their recruitment and retention while alleviating any financial stress. Attend the Canadian Public Sector Pensions and Benefits Conference in Montréal, Québec, July 22-23, 2025, to hear from experts how to offer innovative solutions to ensure the viability of your pension and health and welfare funds. Want to stay up to date on the latest legal and regulatory updates impacting your plans? Attend the Canadian Legal and Legislative Update in Winnipeg, Manitoba, May 14-15, 2025, or the 58th Annual Canadian Employee Benefits Conference in San Diego, California, November 23-26, 2025.