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.
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