Susan Eng spoke on a panel at the Conference Board of Canada’s conference, Benefits and Disability Management, on October 20, 2014 to discuss the Conference Board of Canada’s results from their national survey of employers and employees on their perspectives and experiences with pensions and retirement readiness.
The results of the conference board’s study showed that many Canadians are concerned that they have not saved enough for retirement and that many plan to delay their retirement and continue to work part-time. According to the Conference Board of Canada’s survey results, 60% said that they have not saved enough for retirement and 60% of those aged 65+ said that they will continue to work past their official retirement date.
The conference’s study also surveyed employers on retirement preparedness and found that almost 50% of employers feel that their employees are unaware of how much savings are needed for retirement and among the private sector organizations, group RRSPs are the most comment plan whereas most public sector respondents have a defined benefit plan.
CARP was not surprised with these trends as retirement security and the challenges of older workers are two of CARP’s many priorities. CARP members have voiced their concerns about the erosion of workplace pensions, particularly defined benefit pensions, the lack of financial literacy, and inadequate retirement savings among Canadians. As a result, CARP has been advocating for pension reform through a Universal Pension Plan so that all Canadians have access to a reliable pension.
The results that showed that many will continue to work past their official retirement date was also consistent with CARP’s findings and research. Many of CARP members continue to work beyond the traditional age of 65, some due to financial reasons while others because they want to remain engaged. Increasingly, as many face the financial realities of retirement, many Canadians will need to continue in the labour force and CARP calls on governments and employers to see value in the work of older workers and ensure that older workers can remain active in the workforce. Both government and employers can play a bigger role to ensure that Canadians are better prepared for secure retirement.
Read the Conference Board of Canada’s news release about their report.