Canadians across generations want secure, predictable retirement income
The Canadian Public Pension Leadership Council (CPPLC) held its inaugural forum, A National Discussion on Public Pension Issues at Ryerson University on April 13, 2017. Derek Dobson, CAAT Pension Plan’s CEO & Plan Manager, spoke at the forum about the results of CPPLC’s national survey of Canadian’s values and attitudes toward retirement income. Today, we’re sharing his report, Designing retirement schemes Canadians want: observations from a Modern DB Pension Plan, with CAAT Plan members. You can read the report here.
The results of the national survey confirm that the features typically found in Modern DB Pension Plans, like the CAAT Pension Plan, meet Canadians’ desired retirement outcomes and would also provide an efficient, lower-stress, retirement income solution for Canadian employers and employees. This reinforces our commitment to spread the word about Modern DB Plans, which are good for members, good for employers, and good for Canada.
Below, we provide core observations from the report along with information you can use as a Pension Champion.
- Canadians are willing to contribute more of their income for features associated with Modern DB plans – features like predictable retirement income that is guaranteed to be paid for life.
Only about 1/6 of Canadians have a DB pension plan. As a member of the CAAT Plan, you are among the fortunate few Canadians participating in a Modern DB Pension Plan. When you retire, your pension is paid every month, for the rest of your life.
- Young Canadians (18 – 34) are more willing to contribute for retirement security than is commonly thought.
Young Canadians are more likely to work part-time and contract than in the past. In the CAAT Plan, part-time employees (including those working on contract) have the option to join the Plan at any point during their employment. There is a Pension Road Test tool to help part-time employees decide if joining the Plan is right for them.
- Few Canadians have formal retirement strategies even though they place high importance on maintaining their standard of living in retirement.
As a member of the CAAT Plan, you can estimate your pension at any possible retirement date using our all-new Pension Estimator. It even lets you estimate your income from the Canada Pension Plan (CPP) and Old Age Security (OAS).
- People participating in Defined Benefit (DB) plans, such as the CAAT Plan, reported less retirement-planning stress than those participating in Defined Contribution (DC) plans or Group RRSP arrangements.
The CAAT Plan has tools to help you ensure your retirement plan is on track. The Pension Estimator, call centre, on-site retirement planning sessions, website and videos, are available to all Plan members to help you get the information you need to plan your retirement with confidence.
The CAAT Plan is a founding member of the CPPLC, a non-partisan group of public sector pension plan senior administrators from across the country. Formed in 2013, members of the CPPLC are working together to help inform the debate about retirement income security with evidence-based research. Membership in the CPPLC is one of the ways the CAAT Plan is advocating for Modern DB Pension Plans. You can read about our other efforts in support of DB plans here.
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