A survey of Canadians by Manulife Financial found that respondents were twice as likely to support a Pooled Registered Pension Plan (PRPP) (64%) than increase their CPP or QPP contributions (34%) as a way of saving more for retirement.

Read: An advisor’s guide to the PRPP

PRPPs are workplace savings plans for employees of small to medium-sized businesses or the self-employed with contributions conveniently deducted from each pay. Contributions are invested in a larger pool of funds, which can result in lower fees than if an individual invested on her or his own. Employees are automatically enrolled but can opt-out and have the flexibility to increase or reduce contributions.

Seventy-four percent said it’s ‘important’ or ‘very important’ for their province to introduce legislation to make PRPPs available. That figure climbs to 85% in Quebec and 84% in Newfoundland.

Read: PRPP regulatory proposals published

The National Workplace Savings Survey asked more than 7,700 employed Canadians about their attitudes and convictions towards retirement planning and savings and their attitudes towards enrolling in a PRPP.

Only 10% of Canadians employed at workplaces with less than 100 employees have access to a pension plan. The federal government introduced PRPPs to help address this gap and resulting gap between the savings rates of Canadians and their expected retirement needs.

  • Of those surveyed, 69% are worried that they won’t have enough savings to maintain their current lifestyle in retirement. This figure increases to 78% for those who don’t currently have a workplace retirement plan.
  • The absence of a workplace retirement plan would discourage 69% of employees from switching jobs to that employer.
  • 77% believe saving through a PRPP would make it easier for them to reach their retirement goals.

More on PRPPs:

Will PRPPs create opportunities for advisors?

Standard Life launched PRPP and retirement hub

PRPPs don’t undercut financial advice

PRPPs: New vehicle, same old problems