Affordability challenges and economic uncertainty have many Canadians feeling anxious about retirement.
A new survey from the Healthcare of Ontario Pension Plan (HOOPP) and Abacus Data shows that rising costs for housing and everyday essentials are reshaping how Canadians think about their financial futures. Two-thirds (66%) of unretired Canadians now expect they will have to continue working after retirement to make ends meet. Nearly half (49%) are worried about outliving their savings, while 59% believe they will never be able to retire due to their financial situation.
These worries are especially pronounced among renters and homeowners facing mortgage renewals at higher interest rates. For many, homeownership is no longer the clear path to a secure retirement that it once seemed.
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Pensions still seen as the gold standard
Despite these concerns, Canadians continue to see defined benefit (DB) pensions as the most reliable foundation for retirement security. Nearly nine in ten survey respondents (88%) said they would willingly contribute 9% of their salary — if matched by their employer — into a DB pension plan in exchange for guaranteed lifetime income in retirement.
Support for pensions was consistent across age groups: 82% of those aged 18 to 34, 88% of those 35 to 54, and more than 90% of those 55 and older all agreed they would opt in if given the chance.
“Amid global uncertainty, workplace pensions are of greater value for individual contributors,” the HOOPP report notes, with 62% of Canadians agreeing that these programs are more important than ever.
Canadians also see a broader societal benefit. More than 80% believe it is in the country’s best interest for more people to have access to better retirement savings, and nearly three-quarters say companies could afford to offer workers good pensions if they chose to.
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Ontario Pension funds proving resilient
While Canadians continue to express a desire for pension security, Ontario’s pension regulator says that existing DB plans remain in solid shape despite economic turbulence.
According to the Financial Services Regulatory Authority of Ontario (FSRA), the median solvency ratio of Ontario DB pension plans rebounded to 122% in Q2 2025, despite market volatility following a U.S. tariff announcement in April. The regulator emphasized that plans showed resilience, recovering quickly after a temporary five-point drop in funded status.
FSRA’s recent statement also pointed out that, compared to 2023, more plans are fully funded both on a “going concern” and solvency basis, reinforcing the stability of these retirement programs even amid turbulent markets.
Outlook for Canadian retirement plans
While the survey from HOOPP shows that individual Canadians are struggling to set money aside for retirement while coping with rising daily costs, FRSA reports that major pension funds remain well-capitalized and positioned to deliver long-term benefits for those fortunate enough to have access.
But for the majority of Canadians without a DB pension, the contrast is stark. With 83% saying it’s in everyone’s best interest for more workers to have adequate retirement savings, the findings point toward a growing policy debate: Should more employers, or even governments, step in to expand access to financial security in retirement?
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.