Research finds Canadians overestimate personal savings as a retirement income source — with clear implications for workplace pension design
A new study finds that working Canadians’ expectations around retirement income diverge sharply from what retirees actually experience. For plan sponsors, HR executives, and benefits professionals, the gap is more than an academic observation. It points to structural limitations in how the current system supports workers toward retirement.
The research surveyed 3,317 adult Canadians, polling both working Canadians and retirees. It was conducted by Spark* and commissioned by the CAAT Pension Plan.
The retirement income expectations gap
One in four working Canadians expect personal savings to be a primary retirement income source. Only 15 per cent of retirees report actually relying on personal savings as a primary source.
Public programs and workplace plans carry far more weight in practice:
- fifty-eight per cent of retirees primarily rely on Canada Pension Plan (CPP) and Old Age Security (OAS)
- defined benefit (DB) pension income accounts for 48 per cent of retirement income among retirees with a pension
This isn’t simply a savings motivation problem. The research found that many working Canadians delay their retirement expectations rather than change saving behaviour early. Workplace pensions in Canada help translate intentions into consistent action by reducing complexity and automating saving — an outcome that personal savings alone rarely achieves.
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Source: CAAT Pension Plan, Nine Realities of Canadian Retirement (2026). Research by Spark*, n=3,317 adult Canadians, Nov–Dec 2025. |
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Anxiety is widespread — and measurable
The study shows persistent financial anxiety among working Canadians:
- 49 per cent worry about outliving their savings
- 60 per cent fear inflation will erode their retirement income
The CAAT data reflects a broader pattern. More than half of non-retired Canadians say the lack of a workplace pension limits their ability to save. This points directly to the retirement deficit challenges Canadian employers face in building adequate workplace benefits.
Pension access now influences hiring decisions
For HR executives and benefits professionals, one figure stands out. Eighty-two per cent of respondents said they are more likely to take a job that offers a pension.
A further 58 per cent say lacking access to a workplace pension limits their ability to save.
Pension access has shifted from a retirement planning consideration to a recruitment and retention variable. For plan sponsors weighing the business case for expanding pension benefits, the data provides quantitative grounding for decisions often made on qualitative grounds.
The research also found that most Canadians support policies that make retirement saving easier and more accessible. There is broad interest in retirement solutions that offer more structure, security, and predictability — and less reliance on individual decision-making.
The question of whether an expanded CPP could close Canada’s retirement savings gap remains active in policy circles. The CAAT findings add to the evidence base for that debate.
Browse the latest coverage on pension plan design and retirement planning strategy for plan sponsors and benefits professionals.
