DB pensions protect health, housing security, community connection and confidence in the future
In a world where almost nothing feels predictable anymore, what do people actually count on?
Every morning, we wake up to headlines that would have been unimaginable a decade ago: geopolitical conflict, persistent inflation, housing unaffordability and market volatility. For most people, this isn’t background noise. It shows up in grocery bills, rent increases or mortgage renewals, adult children moving back home or in the 3 a.m. anxiety about the future.
In that kind of world, the value of a defined benefit (DB) pension has quietly but profoundly increased.
When OMERS last surveyed members about the social value of their DB pension in 2021, the story we heard was largely about lifestyle – an ability to travel, participate in hobbies and maintain a comfortable standard of living. By 2025, that story had fundamentally changed. Today, it’s no longer about lifestyle enhancement. It’s about having something solid to hold onto when so much else feels uncertain.
Recent research released by OMERS paints a clear picture: DB pensions have become stability systems. They don’t only provide income; they protect health, housing security, community connection and confidence in the future. In today’s environment, that “stability dividend” may be their most important feature.
The planning advantage: confidence long before retirement
According to Pollara Strategic Insights’ Retire Ready survey, Ontario retirees with a pension plan were much more likely to be better prepared (85%) for retirement than those who don’t have a pension plan (66%).
Among non-retired Ontarians, 39% say they have already planned for retirement, with people with a pension plan among those more likely to be prepared across the four quadrants of financial health, social connections and physical and mental health.
Having a pension plan also adds a layer of security: Among non‑retired Ontarians with a pension plan, 48% say they are more likely to consider retiring earlier, between ages 55 to 64, than those who don’t have a pension plan (27%).
That early planning and confidence translates into real outcomes. Retirees who say they made a solid retirement plan are much more likely to rate their current mental health (96% vs. 77%) and physical health (84% vs. 61%) as good versus those who never made a plan. The former group is also more likely to be social (74% vs. 57%) and report doing well financially (88% vs. 46%) compared to the latter.
The lesson is simple but powerful: when people know that a portion of their future income is secure for life, they plan differently. They move from vague hope to concrete preparation.
The outcomes: structure determines security
The same pattern holds once people actually retire.
Among all retired Ontarians in the Pollara survey, 61% say they have achieved an ideal retirement, with pension plan members and those with a retirement plan more likely to feel they are doing well, particularly in the areas of financial security and mental health.
Research from CANCEA into OMERS social value reflects a marked difference in financial sufficiency. When asked whether they are meeting their retirement income needs, nearly two‑thirds of DB members – 65% – responded positively, compared with only 29% of Ontarians without a pension plan. This gap is also reflected in financial resilience: OMERS retirees are 2½ times more likely to be prepared for a sudden $10,000 expense compared to the general population (74% vs. 34%).
Just as important, not all pension structures deliver the same outcomes: only 45% of defined contribution (DC) retirees report that they are meeting their income needs. The nearly 20‑point gap between DB and DC retirees underscores a critical truth: it’s the structure – the pooling of risk and the guarantee of income for life – that determines security, not merely the existence of a plan.
Our research describes this burden as the “anxiety of agency.” DC members, who must manage their own market and longevity risk during a period of extreme volatility, carry that risk in their heads and hearts. The Pollara survey found that nearly half of non‑retired Ontarians worry they will outlive their savings, and 63% are concerned about healthcare costs as they age.
By contrast, DB pensions act as a shock absorber. Same inflation. Same headlines. Same country. Very different experience of retirement.
Beyond the bank account: housing, health and hope
The stability dividend shows up far beyond finances.
The CANCEA social value research found that OMERS retirees are nearly 1½ times more likely to report excellent or very good mental and physical health. When we measured stress, 53% report low stress, compared with 33% among those without pensions. OMERS retirees also report significantly higher life satisfaction – nearly 2½ times that of the general population.
Happiness, too, has a planning component. While 82% of retired Ontarians surveyed by Pollara say they are happy with their retirement, that rises to 96% among those who made a solid plan before retiring – compared with just 65% who didn’t plan at all.
In practical terms, this means the ability to stay in one’s home, help a grandchild with tuition or absorb an unexpected expense without panic. It’s the difference between constantly scanning the horizon for the next storm and being able to look forward with confidence.
The civic multiplier: when security creates generosity
When people feel secure, they don’t just protect themselves – they show up for others.
Active DB members in the CANCEA social value study are more than twice as likely to donate at least $100 annually to charity as those without pensions (61% versus 29%). In retirement, the pattern holds with more than 75% of DB retirees donating at that level compared with 64% of those without pensions and 42% of DC retirees.
This is the civic multiplier at work: Financial security enables generosity, strengthening communities precisely when they need it most.
The economic ripple effect
The stability dividend also has macro‑economic consequences.
Research into OMERS economic contribution shows that in Ontario alone, OMERS supported over $15 billion in provincial GDP in 2025 – an 11% increase since 2023 – and more than 135,200 jobs across the province. Our activities benefited 832,100 Ontarians, equivalent to one in 11 households. And every $10 in pension benefits generated $16.60 in GDP, quietly underwriting economic resilience across communities.
What changed between 2021 and 2025?
The shift in our findings is not because DB pensions changed. It’s because the world did.
The cost‑of‑living crisis has eroded Ontarians’ emotional and financial buffers. The gig economy, non‑linear career paths and remote work have reshaped how people connect to employers and to benefits. People are living longer, often with complex health needs, while saving less because day‑to‑day costs are consuming more of their income.
In this environment, the value proposition of DB pensions has moved from lifestyle enhancement to solvency protection – from “nice to have” to “one of the few things I can count on.”
The path forward: education and responsibility
As pension leaders, we face a choice about how we talk about the value we deliver.
We can focus narrowly on table stakes – investment returns and funding ratios – or we can embrace a broader understanding of what DB pensions actually do: they enable earlier, more confident retirement planning; they protect peace of mind decades before retirement begins; they support home ownership; they preserve mental and physical health; they sustain the capacity for community giving.
Our Pollara research shows that 75% of non-retired and 52% of retired Ontarians are likely to attend a session if experts provide education and training on retirement preparation. As DB stewards, we are uniquely positioned to deliver that holistic education because we have solved the hardest problem – the financial anxiety that otherwise overwhelms conversations about health, relationships and purpose.
We also have a responsibility to use our platforms to make retirement security part of the broader public conversation. If we don’t, that conversation will unfold without us – and may be shaped by voices who underestimate or misunderstand the role of DB pensions in a resilient society.
A call to action
DB pensions are social infrastructure. Like roads, schools and hospitals, they provide foundational stability that enables individual and community resilience.
As economic uncertainty persists, the question is no longer whether we can afford to maintain DB pensions. Looking at what they enable for individuals, communities and the economy, the real question is whether we can afford not to.
Celine Chiovitti is the Chief Pension Officer at OMERS. Chiovitti is a certified Employee Benefits Specialist (CEBS), Fellowship Status and a member of the OMERS Executive Leadership Team and OMERS Transaction Approval Committee. She's also a member of BPM's Editorial Advisory Board.
