Association responds to new report on the power of pensions

November 25, 2024
Federal Retirees CEO Anthony Pizzino.
Federal Retirees’ CEO, Anthony Pizzino, finds support for Association advocacy priorities in a new report from the Canadian Centre for Policy Alternatives.
 

The National Association of Federal Retirees welcomes the findings of a new report by the Canadian Centre for Policy Alternatives, titled "The Power of Pensions: The impact of pension income on Canada's economy." This report underscores the critical role of pensions in supporting Canadian communities and the broader economy.

Key findings from the report include:

  • In 2021, workplace pension plans contributed $84 billion in pension payments, representing 5 per cent of all income received by Canadians that year — that’s more than Canada Pension Plan, Quebec Pension Plan and Employment Insurance income. 
  • For every dollar increase in pension income, federal and provincial governments in total recoup 41 cents in tax revenue and saved seniors' supports.
  • Workplace pension income — and the resulting spending by seniors — will contribute $24.5 billion to federal coffers in 2025. 
  • Pension income is an important contributor to many local economies, particularly communities with lower-than-average employment income.

The report aligns with the Association’s commitment over more than 60 years to the principle that seniors who can retire with income security contribute to a strong economy. However, we are concerned by the evidence uncovered in this report that pension plan coverage has declined dramatically. In the 1970s, 90 per cent of private sector workers with a workplace pension had a defined benefit plan. Today, that figure has plummeted to just 40 per cent.

"This report reinforces one of our core advocacy priorities: that all Canadians deserve dignity and security in retirement," said Anthony Pizzino, Association CEO. "Better retirement security through pensions is not only good for workers and retirees but also plays a crucial role in supporting the Canadian economy, government finances, local communities and equity for historically disadvantaged groups."

The National Association of Federal Retirees continues to advocate for policies that enable all Canadian seniors to retire with dignity. We call for a policy environment that:

  • Encourages well-managed defined benefit pension plans and enables retirees to continue to contribute to a strong economy.
  • Rejects legislation that allows employers to walk away from their pension promises.
  • Commits to a measured approach to ensure the Canada Pension Plan and Quebec Pension Plan will continue to meet Canadians’ retirement needs and goals.

Our full list of recommendations to enhance retirement income security is available online.

The National Association of Federal Retirees remains committed to working with policymakers to ensure a secure retirement for all Canadians.

To read the full report, visit the Canadian Centre for Policy Alternatives online.