DB pensions can help address not only workforce shortages but also workforce distribution
Too often, defined benefit pensions are viewed only as retirement benefits. In reality, they are also a powerful workforce strategy
That message comes through clearly in the 2026 Canadian Retirement Survey, conducted annually by the Healthcare of Ontario Pension Plan and Abacus Data. This year’s findings show how pensions — specifically defined benefit (DB) pensions — can help employers attract new workers and retain experienced ones. That is especially relevant in healthcare, the sector HOOPP serves.
For the first time since the Canadian Retirement Survey was launched in 2019, the survey included a dedicated sample of 803 healthcare workers, covering the same core topics as the broader population survey along with healthcare-specific issues.
Nearly all healthcare workers surveyed (96%) believe workplace pensions are important to attracting and retaining workers. Nine in ten agree that DB pensions help retain experienced healthcare staff, while 89% say they are key to attracting future healthcare workers
These findings matter because healthcare employers across Ontario continue to face staffing shortages, burnout and growing competition for talent. In healthcare, people are the system, making strong attraction and retention tools essential. When experienced workers leave, organizations face significant costs to recruit, onboard and train replacements. Turnover also disrupts continuity of care and places added strain on remaining staff.
Recent research commissioned by HOOPP and conducted by the Behavioural Insights Team found that healthcare turnover is both expensive and operationally disruptive. The research identified dozens of cost drivers, including productivity losses, vacancy coverage, overtime, temporary staffing and training. Vacancy coverage alone can account for the largest share of turnover costs, while productivity losses can represent a significant portion of total expenses.
This is where DB pensions become especially important.
The survey shows that healthcare workers with a DB pension place enormous value on it. Nearly nine in ten rank their pension among their most important workplace benefits, and more than half say it is as important as their pay. For healthcare workers without access to a DB pension, the demand is significant: 85% say it would make their workplace more attractive over the long term, including 81% of those aged 18 – 34.
At a time when healthcare organizations are working to recruit the next generation of nurses, technologists, support staff and other professionals, these findings should not be overlooked.
The survey also points to another opportunity: improving healthcare access in underserved communities.
Across Canada, many rural and remote communities struggle to attract healthcare professionals. Yet nearly seven in ten younger healthcare workers say they would consider relocating to a less urban community for a job that offered a DB pension. More than half would choose a position in a remote or underserved community with a DB pension over a local job without one.
In other words, pensions can help address not only workforce shortages but also workforce distribution.
While the healthcare findings focus on one sector, the broader survey tells a similar story. Nearly two-thirds of Canadians under 35 say they would consider changing jobs if a new employer offered a DB plan. A strong majority of general population respondents (69%) say they would take a slightly lower salary if the job came with a pension.
Investments in attraction and retention are often discussed in terms of wages, training and recruitment initiatives. Those are all important. But the evidence increasingly suggests that DB pensions should also be viewed as a strategic workforce investment.
They help employers compete for talent. They encourage experienced workers to stay. They reduce costly turnover. They support workforce stability. And in healthcare, that stability ultimately contributes to better care for patients.
At HOOPP, we are privileged to help provide financial peace of mind for the people in Ontario’s healthcare system. While the system is facing many challenges, all of us who benefit from the care we receive can celebrate the people who look after us.
Jennifer Rook is the Vice President of Government, Regulatory and Stakeholder Affairs for the Healthcare of Ontario Pension Plan. She leads HOOPP’s research and advocacy program. Before joining HOOPP in 2023, she led pension plan operations for Ontario’s pension regulator.
