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.
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.
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: