VP at HOOPP outlines what’s causing a decline of pension coverage in the workplace, ultimately increasing retirement uncertainty
Recent findings from the Healthcare of Ontario Pension Plan (HOOPP) and Abacus Data’s 2025 Canadian Retirement Survey confirms that uncertainty remains the buzzword.
As worries mount over inflation, global instability and personal finances are stretched thin, plan members, notably up and coming retirees, are increasingly anxious about one thing: their retirement.
The latest research suggests that uncertainty has become the prevailing emotion when Canadians look ahead to their later years. As Jennifer Rook, VP of strategy, global intelligence and advocacy at HOOPP noted, this widespread sense of insecurity is prompting many to turn to homeownership as a retirement strategy, with 62 per cent viewing their home as a key asset for later life.
However, she questioned whether that approach is sustainable or even wise.
“Maybe that’s not the best route for them to go,” she said, pointing to a troubling figure: 59 per cent of Canadians don’t believe they’ll be able to retire. She believes this level of pessimism should elevate retirement security as a national priority.
“Wouldn’t it be nice if retirement security was part of the discussion [in the workplace]? Why not empower them to save for retirement?” she said.
That’s why Rook advocates for employers to embrace a pension plan strategy, emphasizing that pensions often fall off the radar for employers unless there’s a major economic trigger like the global financial crisis that forces them to reassess.
In a fast-paced business environment, retirement planning isn’t always a priority for many employers.
“Pensions often aren’t top of mind for an employer,” she noted.
She believes research like HOOPP’s and Abacus can help shift that focus by highlighting the broader advantages.
Rook also highlighted “a misunderstanding of the defined benefit (DB) pension model” that’s contributing to the decline of pension coverage in the workplace, notably the perception that they’re too expensive for employers to offer. Whereas “when you peel back the layer, it turns out most employers believe they could afford to offer it,” noted Rook.
She attributes the issue in part to outdated thinking and a lack of conversation around how modern workforce dynamics can align with today’s pension models. The key, she argues, is adapting the model to fit contemporary employment patterns. She suggests that with some effort, DB plans can remain a viable option across various industries.
“Retirements are really complicated and time consuming. People live very busy lives,” she said. “A defined benefit plan provides certainty for people in a time when you live these fast-paced lives and also living longer. It simplifies it a lot.”
She contrasted this with the increasingly common strategy of relying on real estate to fund retirement, which she described as flawed. Canadians often prioritize housing because it’s a more immediate and tangible need, and it feels like progress when you’re paying down a mortgage.
While 62 per cent of people believe their home will help fund retirement, and 50 per cent plan to sell it to do so, Rook pointed out that this is a risky and complicated approach, highly sensitive to interest rates and market swings, whereas “a defined benefit’s very simple. You set it and forget it. You contribute early and regularly, and then you have peace of mind in retirement,” she said.
“For every 20 cents you put in, the pension invests and makes 80 cents of that, paid in retirement. It's an incredible value, if you put the time into setting it up,” added Rook.
Moreover, additional findings from the report revealed geopolitical instability, particularly tensions in Canada-US relations and ongoing trade disputes is heightening financial anxiety among Canadians and directly affecting how they plan for retirement.
According to the findings, 67 per cent of Canadians express serious concern over strained US relations, matching levels of worry over the cost of living and economic uncertainty. The anxiety is most pronounced among older Canadians: 79 per cent of seniors are deeply troubled by trade tensions, and 71 per cent of those aged 55–64 list it as one of their top economic fears as they approach retirement.
This heightened uncertainty is influencing financial behavior. While 22 per cent of Canadians are responding by increasing their savings, 18 per cent have stopped saving altogether, indicating a fragmented and reactive approach to retirement planning in the face of global instability.
That’s why Rook believes employers have a clear opportunity to ease retirement anxiety by offering meaningful retirement solutions, like DB plans.
She pointed to one of the survey findings showing that “88 per cent of Canadians would pay into a defined benefit plan,” a statistic she views as a direct call to action for plan sponsors.
Rook acknowledged that reaching the ideal retirement offering may take time and investment but also argues that incremental progress is possible and necessary, while highlighting a critical disconnect.
Many employers underestimate their employees' preference for pensions, and while 62 per cent believe they can afford to offer one, a large portion still don’t. Consequently, HOOPP pointed to a previous employer survey that cited 65 per cent of employers believes their employees would prefer higher salaries over no pension or lower pensions.
“It's not an easy topic to tackle,” she emphasized, but stressed that with 67 per cent of Canadians expressing concern about retirement, “it’s time to take proactive steps to address that.”
