As Canadians feel the financial impact of COVID-19, their desire for pensions – and their willingness to pay for them – remains strong, according to new research from the Healthcare of Ontario Pension Plan (HOOPP) and Abacus Data.

In May and June of 2020, HOOPP commissioned Abacus Data to conduct a public opinion survey of 3,500 Canadians gauging their views on retirement preparedness, workplace pensions and the implications of decreasing pension coverage. A comparable survey in 2019 found Canadians are thinking of the future, want to be prepared for it, and know a pension is the solution.

“This year's findings reaffirm Canadians’ personal and societal concerns around retirement security,” said Steven McCormick, SVP, Plan Operations, HOOPP. “Immediate public health and financial considerations stemming from COVID-19 have not changed Canadians’ commitment to pensions, and their willingness to pay for them to ensure a better future for themselves and for everyone.”

This includes a continued willingness to do their part and forgo money today in exchange for a better future with the help of a pension.

Key findings include:

• More than half (57%) report their own financial situation has been harmed since March, and 62% are concerned about the value of their investments/savings as a result of COVID-19.
• More Canadians are concerned about their retirement security (55%) than their job security (44%).

Despite these immediate and personal concerns, Canadians take a long-term view:

• Almost three quarters (72%) of Canadians agree there is an emerging retirement income crisis.
• 84% believe it is in everyone’s best interest for more people to have better retirement savings. This view spans high- and low-income earners, political affiliations, and those with and without a pension.
• 77% believe that without good pensions, the economy will suffer.
• 76% are concerned that if workers are unable to access good workplace pensions and contribute during their working lives, they will eventually become a burden on the taxpayer.

Canadians also agree on what kind of pension they think is most effective:

• 78% said reasonable pay cheque deductions are an effective way of helping Canadians pay for retirement.
• 82% said all workers should have a pension that guarantees a percentage of their working income in retirement.
• 86% said all workers should have access to efficient retirement savings arrangements.

Other recent research from HOOPP, the Value of a Good Pension, looked at how to make saving for retirement more efficient; and highlights the five value drivers that help savers optimize their retirement income: automatic contributions, lower fees and costs, professional investment management, fiduciary governance, and risk pooling.

“Canadians have observed the erosion of workplace pension plans, and they are concerned about the impacts – for individuals, for the economy and on public funds,” said Abacus Data CEO David Coletto. “And they have an expectation that their employers will help, as 76% said companies have a responsibility to offer pensions that provide adequate retirement income.”

Coletto added: “While Canadians recognize that businesses have also been negatively affected by COVID, they still believe that good retirement savings programs can be made more widely available.”

Canadians are willing to do their part:

• 79% would rather their employer make pension contributions than receive that money as salary. Remarkably, this percentage was the same, even for Canadians who said their finances were negatively impacted by COVID-19 “a great deal.”
• 74% would accept a slightly lower salary in exchange for a better (or any) pension plan.

McCormick said: “Canadians are saying, as a country, we need to do more and we know what works. There needs to be ongoing dialogue between government, business and the retirement security community on how we can provide more efficient, affordable and sustainable retirement savings vehicles for all Canadians.”

He added: “At HOOPP we have expanded access where we can – within Ontario’s healthcare sector. It is an honour to support those who support all of us, especially during these difficult times. We have added more than 125,000 members and almost 250 employers in the past 10 years. Also, more than 30% of our members work part-time. This is a segment of the working population that often doesn’t have access to pensions and, despite limited disposable income, have voluntarily chosen to join HOOPP. This is yet another sign that Canadians know what works and appreciate the value of a good pension.”

More details of the research can be found on HOOPP’s website.

These findings are based on a survey conducted online with 3,500 Canadians, ages 18 and older, from May 27 to June 5, 2020. The margin of error for a comparable probability-based random sample of the same size is +/- 1.63%, 19 times out of 20. The data were weighted according to census data to ensure that the sample matched Canada’s population according to age, gender, educational attainment and region.

About the Healthcare of Ontario Pension Plan

HOOPP serves Ontario’s hospital and community-based healthcare sector, with more than 590 participating employers. Its membership includes nurses, medical technicians , food services staff, housekeeping staff, and many others who provide valued healthcare services. In total, HOOPP has more than 380,000 active, deferred and retired members.

HOOPP operates as a private independent trust, and is governed by a Board of Trustees with a sole fiduciary duty to deliver the pension promise. The Board has representation from the Ontario Hospital Association (OHA) and four unions: the Ontario Nurses' Association (ONA), the Canadian Union of Public Employees (CUPE), the Ontario Public Service Employees' Union (OPSEU), and the Service Employees International Union (SEIU).

About Abacus Data

Abacus Data is a market research and public opinion firm based in Ottawa. We conduct research for and provide strategic counsel to some of North America’s leading corporations and advocacy groups by delivering global research capacities with the attention to detail and focus of a boutique firm. Our team has over 45 years combined research and consulting experience working with associations, using public opinion research to inform internal strategies and raise issues on the public and government agenda.

Contact: James Geuzebroek
Senior Manager, Media and Public Affairs
416-350-4800 or jgeuzebroek@hoopp.com