​

By: Healthcare of Ontario Pension Plan (HOOPP)

Inflation and interest rates may be down, but Canadian employers are still worried about the effects of a challenging economy on their businesses and on their employees' mental health and financial stress.

Recent research from HOOPP and Angus Reid Group suggests offering retirement benefits can help reduce employees' financial stress and improve their mental health. Offering retirement benefits also helps employers' recruitment and retention efforts and can improve employee productivity. 

The 2024 Canadian Employer Pension Survey found that most Canadian employers are concerned about the current negative impact of inflation (78%), employee burnout (68%) and competition for hiring (63%) on their organization.

They're also worried about the well-being of their employees', particularly their:

• mental health (82% of employers)
• financial stress due to inflation (82%)
• financial stress due to economic instability (79%)

Employers also see the connection between their employees' financial stress and their overall well-being. The vast majority agree that workers who are less financially stressed experience better mental health (96%) and wellness (95%).

It makes sense, then, that nearly nine in ten (86%) employers believe it's important to offer benefits that reduce financial stress for their employees. Most (83%) also see offering retirement benefits as a cost-effective way to reduce that stress.

The consensus on pensions

Earlier this year, HOOPP's annual Canadian Retirement Survey found that most Canadians are concerned about their finances, as they continue to grapple with the lingering effects of years of inflation. Having access to a good workplace pension can help reduce some of that stress, enabling workers to save for the future even as they navigate the day-to-day.

Fortunately, both Canadians and their employers recognize the societal value of good pensions. A strong majority (75% or more) of Canadians and employers agree with each of the following statements:

• Without good pensions in place, the economy will suffer.
• All workers should have access to an affordable retirement savings arrangement.
• If workers aren't able to access good workplace pensions during their working lives, they will become a burden on the taxpayer.

Why it matters

Having a good workplace pension, like HOOPP, can meaningfully impact an individual's sense of financial well-being. HOOPP members can feel confident in their financial future with the knowledge that they'll receive a reliable, monthly income for life in retirement.

Although Canadians and their employers see the value in good workplace pensions, many people still don't have access to them. That's part of the reason HOOPP commissions research into retirement security: we believe that we'll all be better off when more Canadians have access to a financially secure retirement, and we hope our research helps drive the national conversation on this important issue.

Learn more about our research on hoopp.com. 

​