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October 22, 2021

Pension plans play growing role in job satisfaction: report

While take-home pay used to be the driver, more and more Canadian workers are coming to believe that  a secure pension plan is a more important component of an attractive pay package.

According to a survey from Towers Watson, one-third of Canadian employees would be willing to sacrifice a portion of their compensation in return for a better pension, while one in four would agree to forgo a bonus in exchange for additional retirement benefits.

“As financial insecurity becomes more widespread, Canadian workers are increasingly interested in a secure rewards package with retirement benefits they can count on,” said Ian Markham, retirement innovation leader at Towers Watson.

The survey found that 50% of respondents with a guaranteed defined benefit (DB) plan identified their retirement program as a key reason for joining their current employer, compared to 30% of respondents with a defined contribution (DC) plan or group RRSP, where the eventual payout is dependent on employees' investment fresults. 

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DB plans appear to play an even more significant role in retention. Depending on age, between 62% and 71% of Canadian DB plan participants cite their retirement program as a compelling reason to remain with their current employer, compared to between 30% and 50% of those with a DC plan.

Younger DB plan participants in particular were twice as likely to stay with their current employer, compared to those with a DC plans.

Are retirement benefits high on your list when it comes to job satisfaction? When did pensions become that important to you?

By Gordon Powers, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...