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Oh, hi again. There’s a saying that retirement income rests on a three-legged stool: government programs, personal savings, and workplace savings. If one of the legs isn’t strong enough, the whole thing can come crashing down. Today, we’re looking at one of the shakier legs of the stool and what’s being done to screw it a little tighter.
Canada has a workplace savings problem
More than nine million Canadians don’t have access to a workplace retirement plan, and the gap is especially noticeable at small and medium-sized businesses.
Fewer than one in five Canadian employers with five to 499 employees offer any kind of retirement benefit, according to a March report from the C.D. Howe Institute. In the United States, nearly half do.
Now, to give Canada some credit: We do have a strong public pension foundation. But our lack of workplace retirement coverage is one major reason Canada ranked just 16th out of 52 countries in the 2025 Global Pension Index.
Without workplace savings, retirees have to rely more on personal savings, which can be unreliable because of inconsistent contributions and the ability to draw down on accounts more easily.
The C.D. Howe Institute says one of the biggest reasons smaller employers don’t offer plans is cost. Setting them up and managing them can be expensive and complicated for businesses without large HR departments or benefits teams.
That’s part of why companies are trying to make these plans easier, and more appealing, for smaller employers to offer.
Sun Life announced this month a workplace savings plan aimed at small and medium-sized businesses. The plans include RRSP and TFSA options, with no setup fees or minimums. They’re built around Sun Life Global Investments’ Granite target-date funds, which are portfolios that automatically shift from riskier investments toward safer ones as retirement gets closer. Of course, there’s a business opportunity here for Sun Life, too.
There’s also something in it for employers. A poll commissioned by Sun Life found more than a quarter of working Canadians say financial stress is hurting their productivity and engagement at work. Another 87 per cent said employers that help workers save earn greater loyalty from staff.
The C.D. Howe Institute is also pushing for policy changes to encourage more small businesses to offer retirement plans. In a recent report, the think tank proposed a tax credit with two parts: one to help cover startup costs, and another to help subsidize employer contributions.
Under the proposal, employers could claim up to $5,000 a year for three years to offset setup costs, plus up to $1,000 annually per eligible employee to help fund employer contributions. The contribution credit would apply to workers earning less than $150,000 a year.
The Calculator
65%
Share of advisers who say they’re increasing exposure to Canadian equities in today’s market volatility, beating out bonds, gold and U.S. equities, according to Fidelity Canada.
What they’re saying: “Advisers are increasingly turning to Canada for its certainty, stability and opportunity,” said Chris Pepper, vice-president of corporate affairs at Fidelity, in a statement. “As macro conditions evolve in support of Canadian markets and governments focus on growth and investment, advisors are well positioned to capitalize on opportunities in their home market.”
The Retirement Receipt
Robert K. Irving ran J.D. Irving Ltd. alongside his brother, Jim, and was responsible for what is perhaps the company’s most recognizable product, the Cavendish Farms French fry.The Canadian Press/The Canadian Press
Maritime business leader Robert K. Irving, who helped turn Cavendish Farms into one of North America’s largest frozen potato companies, died this week at 71. Under his leadership, the company grew from selling roughly 25 million pounds of French fries a year to about one billion annually, while expanding into a major employer and economic force in Prince Edward Island.
Why it matters: Irving’s story is a reminder that many older Canadians never really “retire” in the traditional sense, especially family-business leaders whose identities are deeply tied to the companies they built. Mr. Irving stayed close to the work itself, walking the fields, visiting plants, and being “where the action was,” said a news release published by J.D. Irving Ltd.
Best of the Rest
🏠 Boomer parents can rethink helping their adult children buy homes, says personal finance columnist Rob Carrick. With Canada’s housing market cooling and prices in some cities still well below their peak, parents can afford to think about how much financial help they can realistically give without jeopardizing their own retirement.
👀 Your diet can shape how well you see as you age. Dietitian Leslie Beck breaks down the nutrients linked to better eye health, from leafy greens to omega-3-packed fish and explains how a Mediterranean diet may help lower the risk of age-related vision problems.
🏘️ Private mortgage investment funds have high returns, but it can come with a catch. They can generate stock-like returns, but there is a big risk that investors may be underestimating: Not being able to get their money out when they want it.
🏥 Healthcare jobs are booming as the population ages. But while care work is propping up the Canadian economy, the country may be falling behind in building industries that tend to drive faster economic growth.
Try This
💰 Wealthsimple is rolling out a new product to encourage kids to save. The company’s “parent-paid interest” feature will give kids chequing accounts that have the same savings rate as that of their parents’. On top of that, parents can increase the interest rate earned on a child’s account, while paying the difference themselves, with the money automatically transferring from the parents’ account.
