Pensions contribute to more than just financial security in retirement – research suggests having a pension can improve individuals’ health and well-being both pre- and post-retirement. ​

In fact, for workers with a defined benefit (DB) pension plan, just being reminded of the benefits of their pension is enough to boost their sense of financial well-being, according to a recent study from HOOPP and The Behavioural Insights Team, a global research firm.  

The Health Impacts of a Pension research identified finances as the biggest source of stress for older Canadian workers, followed by health concerns, family or relationship problems and work- or school-related stress. The study, a randomized controlled trial of over 2,800 full-time workers aged 40 to 60 who contribute to a DB pension, found that 60 per cent of participants thought about their current financial situation daily or weekly. And they aren’t the only ones. 

Most Canadians are concerned about affording their daily expenses whilst navigating a high cost of living and an increasingly turbulent economy.  

A good workplace pension plan can help reduce some of this stress by helping members save for the future even a​s they focus on navigating their day-to-day.  

The health benefits of pensions  ​

Not only can thinking of their pension boost workers’ feeling of financial wellness, The Health Impacts of a Pension study also found that workers with a DB pension, like HOOPP, experience nine per cent higher financial well-being and 10 per cent lower financial stress when compared to workers in the same age bracket who don’t have a workplace pension. 

These benefits extend beyond just reducing workers’ stress. A growing body of international research has proven financial stress can negatively affect individuals’ health and the evidence sugg​​ests having a pension can help relieve that stress. In fact, having a pension can: 

• Improve mental and physical health 
• Reduce chronic inflammation, which can cause cancer, heart disease, diabetes and other serious illnesses, by alleviating financial stress 
• Promote healthier living in retirement by facilitating a healthy diet, regular exercise and community engagement (e.g., volunteering, playing team sports) 

The research also suggests that improving access to workplace pensions can help reduce health inequity experienced by women, people who are separated or divorced and members of low-income households, who are more likely to be affected by fina​ncial stress. 

Why it matters 

Good workplace pensions, like HOOPP, can provide more than retirement security – they support Plan members’ financial well-being, health and even help drive economic growth.  

That’s why HOOPP commissions research into pensions and retirement security: we believe we will all be better off when more Canadians have access to good pensions and the financially secure retirement they can help provide.  

Learn more in The Health Impacts of a Pension. ​