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Additionally, employers should offer automatic enrollment plans that employees have to opt out of actively. Vanguard’s How America Saves 2019 report found that only 60 per cent of plan members joined pensions with voluntary enrollment. By comparison, there was a 91 per cent participation rate for automatic enrollment plans.

HOOPP’s CEO, Jim Keohane, recently announced his retirement. According to Keohane, “It’s very difficult to grow your own money the way you’d like. Cost implementation is higher and making decisions on your own is more challenging. Having seen both sides, I feel fortunate to be in HOOPP as it avails me to feel like I have a secure retirement. It would be more challenging otherwise.”

Keohane also shared a recent HOOPP survey found that 8 out of 10 Canadians would forgo a salary increase for a better — or any — pension. For years, he says HOOPP plan members have said they would rather pay more than have their benefits reduced.

Public sector pension plan members may well need to pay more going forward, as future investment returns could be much lower than in the past. Life expectancies are also increasing. Public sector employees no doubt will — and should — defend their pensions. Private sector employees should be asking governments to contribute more towards their retirement as well.

As a self-employed business owner with employees, I would rather not be told by the government how to save for my own retirement nor how to compensate my staff. Tax incentives could be a happy medium compared to requiring employers to offer pensions. As a financial planner, I see firsthand how those with pensions are benefitting in retirement compared to those without.

Jason Heath is a fee-only, advice-only Certified Financial Planner (CFP) at Objective Financial Partners Inc. in Toronto, Ontario. He does not sell any financial products whatsoever.