The Healthcare of Ontario Pension Plan (HOOPP) commissioned The Behavioural Insights Team (BIT) to conduct a global literature review identifying the health impacts of pensions* and an industry-first online study** investigating the impact of having a defined benefit (DB) pension on individuals’ financial stress and well-being pre-retirement. The findings of this research are detailed in the two-part report The Health Impacts of a Pension.

The research suggests:

• Having a pension improves individuals’ mental, physical and social health†.
• For workers with a DB pension, just being reminded of their pension is enough to improve their sense of financial well-being††.

Key findings

The literature review provides a clearer understanding of the positive individual health outcomes associated with having a pension and identifies areas where further study would be beneficial.

The findings suggest having a pension promotes several positive health outcomes for individuals, including:

Findings from the literature review also suggest that more research is needed into the health impacts of pensions on pre-retirement workers, the effects associated with specific types of pensions (e.g., DB pensions, defined contribution pensions, etc.) and how to maximize the health benefits linked to having a pension.

To help fill these gaps, an online study was then conducted to investigate how having a DB pension impacts financial stress and well-being for pre-retirement Canadian workers. As part of the study, DB pension members were randomly divided into two groups: one group was prompted to think about their pension while the other group was not. Participants then responded to standardized scales measuring their financial stress and financial well-being.

A secondary study of Canadian workers without a pension allowed for a comparison of their levels of financial stress and well-being with those of the DB pension members who were not prompted about their pension.

The online study found:

Why it matters

When individuals have good pensions, they live longer, healthier lives. This, in turn, benefits the broader healthcare system by reducing the number of Canadians suffering from financial stress-related physical and mental health conditions.

A better understanding of the relationship between pensions and individual health will be key to improving health outcomes for Canadians of all ages, before and during retirement. The Health Impacts of Pensions opens the door to more meaningful research on this important topic.

*The literature review included research into public pensions and “high-quality” workplace pensions, including DB and other types of pension plans.

**The online study was a randomized controlled trial, a scientific study where participants are randomly assigned to different groups to test the effectiveness of a treatment or intervention.

†Understanding the effects of having a pension on health and well-being (2024). Literature review. Healthcare of Ontario Pension Plan and The Behavioural Insights Team.

††The impact of having a defined benefit pension plan on well-being (2024). Online study. Healthcare of Ontario Pension Plan and The Behavioural Insights Team.