A voluntary, portable plan with 32,000 members targets workers left uncovered
The Saskatchewan Pension Plan (SPP) marked its 40th anniversary on Thursday, with the retirement-coverage gap it was created to fill still wide open.
Established by the Government of Saskatchewan in 1986 to help people with little or no access to a workplace pension save for retirement, the voluntary defined contribution plan now has more than 32,000 members and more than $900 million in assets, SPP said.
Statistics Canada reported in July that 37.6% of paid workers were covered by a registered pension plan in 2024, down from 37.7% a year earlier. Private-sector membership fell by 25,800, while public-sector plans added about 157,900 members. SPP put private-sector coverage at just 22%.
Preparation is also a concern. In 2024, only 49% of Canadians who had not yet retired were financially preparing for retirement, and just 31% felt confident about their expected retirement income, according to SPP.
The stakes are rising as retirements lengthen. SPP said Canada’s population has grown from about 26 million in 1986 to more than 41 million, and the share aged 65 or older has gone from just over one in 10 to one in five. At 65, men can now expect nearly 20 more years of life and women more than 22, up from about 15 and 19 in the mid-1980s.
“Retirement planning can feel overwhelming. People are being asked to make decisions today about what their life might look like decades from now,” said Chad Hilton, SPP’s chief executive officer. “A pension can make part of that process simpler.”
How the plan works
Canadians aged 18 to 71 with available registered retirement savings plan (RRSP) room can sign up, with no minimum contribution. Participation is voluntary and not tied to a single employer, so members can keep contributing as jobs change. Employers can also offer SPP as a workplace pension without building and administering a traditional plan.
SPP argues the challenge has shifted from a lack of options to too much complexity in an era of self-serve investing, robo-advisors and online brokerages. A pension, it says, takes investment decisions off savers’ shoulders.
A December 2025 C.D. Howe Institute memo described SPP as a non-profit collective defined contribution plan with an average net annual return of about 8% over its 40-year history and a target expense ratio under 1%. Accounts are portable and locked in until age 55. The authors are Shannan Corey, SPP’s former executive director, and Colin Busby, the institute’s director of policy engagement.
The memo noted SPP won approval to operate nationally in 2021 and that, since 2023, members can contribute up to their full RRSP limit and transfer in unlimited unlocked registered savings. It added that SPP can still advertise only in Saskatchewan, and said regulators should reassess those restrictions.
What it means for plan advisers
For consultants, advisers and small-business owners, the plan is a possible option for employees without a workplace plan. It is also a case study in how portable, pooled arrangements could complement the existing system. The memo’s authors said SPP is not the only solution.
“Looking back on 40 years, we’re very proud of how far we’ve come,” said Hilton. “But this anniversary is also an opportunity to look forward. There are still millions of Canadians without access to a workplace pension. We want more individuals and businesses across Canada to know that there is another option.”
