(November 24, Toronto, ON) – More than half of Ontarians without workplace pension plans saved nothing for retirement in the last year – and more than 83% fear that without better pension coverage Ontario is headed for a retirement income crisis.
Those are just some of the findings of a poll carried out for the Healthcare of Ontario Pension Plan (HOOPP) by the Gandalf Group. The research found Ontarians were “very concerned” or “somewhat concerned” about these key retirement planning topics:
- 58% without pensions at work saved nothing for retirement in the last year.
- 85% worry that without good workplace pensions, Ontarians will face senior poverty.
- 62% wonder if they will have enough money for retirement.
- 58% ask if their retirement savings are secure.
How much is enough retirement savings? The research found that half of Ontarians believe they will need an average of 63% of their working salary to live on in retirement.
This research illustrates the point that the vast majority of people are much better off in a structured plan such as a defined benefit plan. The defined benefit (DB) pension model addresses the challenges of saving enough and receiving enough, says HOOPP President and CEO Jim Keohane. Member contributions are automatically made each payday and the DB payout is based on a percentage of workplace earnings.
“With a plan like HOOPP, after 30 years of membership a member can expect to receive about 60% of what they earned at work,” Keohane says. “That pension is paid for life – and about 80 cents of every dollar HOOPP pays out comes from investment returns.”
78% of those surveyed felt that pension plans offered at work should deliver retirees at least 60% of their pre-retirement income. Gandalf conducted the survey of 1,132 Ontarians in early September.
View the full whitepaper
For further information or to arrange interviews, please contact:
Joe Vecsi, Senior Manager Public Affairs
416 369-9212 ext 4315
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