November 2, 2026
CARP was invited to comment on the Ontario Government’s proposal to allow account owners access to locked-in pension funds. The erosion of workplace pensions, particularly defined-benefit plans, has been a net loss for Ontarians and Canadians. It has shifted investment and longevity risk onto individuals and made retirement income less predictable. While locked-in pensions are intended to protect retirement savings, CARP believes that individuals should have the freedom to make decisions about money they have earned throughout their working lives.
CARP is not taking a blanket position for or against unlocking pension funds. Instead, our submission emphasizes that any changes made regarding pension funds must balance individual choice with strong protection for retirement security.
If Ontario proceeds with unlocking pension funds in locked-in accounts, CARP calls for the establishment of six fundamental rules around such a change, including:
- making the consequences clear before the decision;
- providing independent help without an adviser veto;
- putting enforceable obligations on institutions and advisers;
- protecting genuine consent and responding to evidence of abuse;
- keeping access practical for people in urgent need;
- and measuring outcomes and providing effective recourse.
CARP will defend our members’ right to make an informed choice when it comes to unlocked pensions and insist on enforceable protections against those who would exploit it. The government should bring as much rigour to regulating the conduct of institutions handling pension money as it brings to regulating members’ access to it.
