Retirees with workplace pensions report household income nearly $33,000 higher than those without one
A fundamental mismatch between what Canadians anticipate from retirement and what those already retired are actually experiencing has been laid bare in a new report.
The nationally representative study of more than 3000 Canadian adults reveals a persistent disconnect between where people expect their retirement money to come from and where retirees say it actually originates.
While 25% of working Canadians anticipate personal savings will be their dominant source of retirement income, only 15% of retirees report that being the case. In reality, the CAAT Pension Plan research found that 58% of current retirees say CPP/OAS is their primary funding source, and defined benefit pension income makes up close to half of total retirement income for those who have access to one.
"Canadians are trying to do the right things financially, but many still feel uncertain about retirement," said Kevin Fahey, acting CEO, plan manager, and CIO at CAAT Pension Plan. "Our research suggests the retirement system increasingly places the burden of navigating complex financial decisions and long-term risk on individuals themselves. Even people who are actively saving and planning can find that difficult to manage with confidence over time."
The income difference between pension holders and those without is considerable.
Retired households with pension income report average annual earnings of $85,735, compared with $52,570 for retirees without a pension. The gap is even more pronounced at the median level, $75,000 versus $25,000, suggesting the benefit extends across the distribution rather than being concentrated among high earners.
The research also documents a widespread tendency among pre-retirees to adapt to retirement uncertainty not by saving more aggressively, but by pushing back their expected retirement date. The average ideal retirement age across respondents is 60, while the average expected retirement age is 67. That seven-year gap holds consistent across age cohorts from 18 to 59.
Workplace plans
More than half of non-retired Canadians, 58%, say the absence of a workplace pension directly limits their ability to build retirement savings. One third of retirees say the same lack of access held them back earlier in life, and 68% of retirees without a pension say they wish they had been able to contribute to one.
Pension membership also appears to drive broader financial engagement. Pension plan members are nearly four times more likely than non-members to use a full suite of savings vehicles such as TFSAs, RRSPs, and non-registered accounts. By contrast, 38% of people without any pension take no retirement saving action at all.
Meanwhile, 60% of Canadians earning less than $50,000 report they are not saving for retirement at all.
On attitudes toward policy, 74% of respondents say it is unrealistic to rely on government programs alone for retirement income, while 90% back measures that would make saving easier. Some 82% of those without a pension say they would welcome the option to transfer existing savings into a defined benefit structure.
The talent dimension of pension access is also documented. Some 84% of respondents say they are more likely to accept a job with an employer who offers a pension, and 85% say having one increases their motivation at work. Among younger workers aged 18 to 29, 66% say they would contribute to a pension plan even without employer matching.
"Retirement security is about much more than savings alone," Fahey added. "Our findings suggest Canadians are looking for more predictability, more clarity, and retirement solutions that are easier to navigate with confidence."
CAAT, established in 1967 to serve Ontario's college system, now covers more than 125,000 members across 850 participating employers in 20 industries. The plan was 124% funded on a going-concern basis as of January 1, 2026.
