HOOPP Canadian Retirement Survey 2022 and Abacus Data

Ontario Pension Plan Health

TORONTO, June 23, 2022 (GLOBE NEWSWIRE) — Economic factors like rising inflation and rising interest rates are threatening the retirement security of Canadians, according to the 2022 Canadian Retirement Survey from Healthcare of Ontario Pension Plan (HOOPP) and Abacus Data. The outlook is particularly worrying for those under 35, whose barriers to home ownership and ability to save – both of which have a strong impact on retirement security – are increasingly being reduced. questioned by these economic conditions.

In the survey of 1,716 Canadian adults, 55% said they were worried about having enough in retirement, up six points from a year ago. The other top concerns impacting retirement security were the day-to-day cost of living (66%), which rose 11 points, ‘income keeping pace with inflation’ (62%) and housing affordability” (56%).

“Concerns about retirement and savings have been high every year we have made the Canadian Retirement Survey, and now they’re being exacerbated by rising interest rates and inflation,” said Steven McCormick, Senior Vice President, Plan Operations, HOOPP. “Well over half of Canadians expect these factors to cause financial hardship and force them to retire later. At the same time, financing retirement by selling a home is becoming a less viable strategy for many people. This raises the question of whether Canada’s younger generations are headed for a perfect retirement security storm.

Saving for retirement is the top priority – but a third haven’t saved anything

Saving for retirement is Canadians’ second priority, with 53% citing it (affording for everyday life was number one, at 62%), but many struggle to achieve it. Thirty-two percent of working Canadians said they hadn’t saved anything for retirement yet, and 38% said they hadn’t saved anything for retirement in the past year.

Nearly half of Canadian homeowners plan to rely on the sale of a home to prepare for their retirement (45%), but this plan is becoming increasingly risky in the current environment. In addition to high levels of concern about current housing affordability, 58% of non-homeowners said they were worried about the effect of interest rates on their ability to buy a home. And an equal number of homeowners worry about others’ ability to buy their homes as they approach retirement.

“The overall outlook for retirement security in Canada is darkening,” said David Coletto, CEO of Abacus Data. “Seventy-five per cent of all Canadians agree that there is an emerging retirement crisis in Canada and 72 per cent believe that saving for retirement is prohibitively expensive – both up seven points from to last year. And if current trends continue, it will be more difficult for the younger generations.

While concerns are widespread across all age groups, the situation is worse for Canadians aged 18 to 34. Compared to Canadians aged 35 and over, people in this younger group are less likely to own a home (47% versus 67%) or have savings over $5,000. (54% versus 61%). Seventy-five percent of non-homeowners aged 18 to 34 worry about the impact of interest rates on their ability to buy a home, and an equal proportion of homeowners in this age group worry about their ability to pay current and future mortgage payments. .

Better pensions are needed – 82% agree

McCormick added: “The savings challenges are more acute for young adults, but there is a consensus across generations that an important solution to the problem is better middle retirement savings plans. work, and that everyone has a role to play on this front”:

  • 82% of Canadians agree that all workers should have access to a pension that guarantees a percentage of their working income in retirement. Sixty-six percent are prepared to pay for this access themselves by accepting a slightly lower salary in exchange for a better (or better) pension.

  • 77% agreed that all employers should be required to contribute in some way to the pensions of all workers, and 74% agreed that governments could save money by supporting more efficient pensions.

  • 83% agreed that without good workplace pensions, many Canadian seniors will experience poverty and 77% said workers without pensions will become a burden on the taxpayer.

“Previous HOOPP Research with employers, as well as with our own members, has confirmed that good workplace retirement savings plans reduce financial stress and improve peace of mind for workers of all ages,” added McCormick. “And that in turn improves productivity for employers.”

These results are based on an online survey of 1,716 Canadians aged 18+ from April 21-27, 2022. The margin of error for a comparable random sample of the same size is +/- 2.35 %, 19 times more than 20. The data is weighted according to census data to ensure that the sample corresponds to the Canadian population by age, gender, level of education and region.

About the Ontario Health Care Pension Plan:
HOOPP serves Ontario’s hospital and community health care sector, with more than 620 participating employers. Its members include nurses, medical technicians, food service personnel, housekeeping staff and many others who provide valuable healthcare services. In total, HOOPP has more than 420,000 active, deferred and retired members.

HOOPP operates as an independent private trust and is governed by a Board of Directors whose sole fiduciary duty is to fulfill the pension promise. The Council is jointly governed by the Ontario Hospital Association (OHA) and four unions: the Ontario Nurses Association (ONA), the Canadian Union of Public Employees (CUPE), the of Ontario Public Service Employees (OPSEU) and the Service Employees International Union (SEIU). This governance model ensures representation of management and workers in support of the long-term interests of the Plan and its members.

About Abacus:

Abacus Data is an innovative and growing opinion research and marketing consultancy. They use the latest technology, sound science and deep experience to generate top-notch research-based advice for clients. They offer global search capability with a strong focus on customer service, attention to detail and exceptional value. Abacus is the only research and strategy firm that helps organizations respond to disruptive risks and opportunities in a world where demographics and technology are changing faster than ever. To learn more, visit: abacusdata.ca

Contact:

James Geuzebroeck
Director, Media and External Communications
[email protected]

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