HOOPP put out a press release today stating their new research suggests people are more worried about their finances than any other issue in their lives:
TORONTO, Feb. 06, 2025 (GLOBE NEWSWIRE) -- New research conducted
for the Healthcare of Ontario Pension Plan (HOOPP) indicates the top
source of stress for workers aged 40 to 60 is their financial well-being
– and for most people, it’s a daily concern.
The findings are based on a study
of more than 2,800 participants who were asked to identify the biggest
sources of stress in their lives: 58 per cent of respondents listed
financial stress as their top worry. Health concerns (39 per cent),
worries about relationships or family issues (37 per cent) and work or
school-related stress (37 per cent) were also cited. Additionally, the
study found that 60 per cent of the participants thought about their
current financial situation daily or weekly.
The study group was
made up of full-time workers between the ages of 40 and 60 who are
members of a defined benefit (DB) pension plan. Researchers also
collected data from a separate group of workers aged 40-60 who do not
have a workplace pension. The workers with a DB pension plan reported a 9
per cent higher financial well-being and 10 per cent lower financial
stress than those without a pension.
“Stress – including stress
about your financial situation – is a key factor influencing both
physical and mental health,” said Ivana Zanardo, HOOPP’s Head of Plan
Services. “This new research also suggests women in the workplace are
experiencing higher levels of financial stress and lower levels of
financial well-being than men.”
The report defines financial
well-being as a person’s ability to meet their financial obligations,
feel secure in their financial future and make choices that allow them
to enjoy life. Financial stress refers to psychological strain
associated with managing one’s finances, such as worrying about meeting
financial obligations, income security, challenges with savings or
accumulating debt.
Zanardo added, “The economic benefits of
having a pension are well known and contribute to financial security in
retirement. There is growing evidence based on research by academics
from around the world that financial stress can lead to serious health
problems, but having a pension can reduce that stress. HOOPP
commissioned this research to better understand how pensions contribute
positively to our members’ health and well-being.”
HOOPP
serves Ontario’s hospital and community-based healthcare sector, with
more than 700 participating employers. Its membership includes nurses,
medical technicians, food services staff, housekeeping staff, and many
others who provide valued healthcare services. In total, HOOPP has more
than 475,000 active, deferred and retired members.
HOOPP
operates as a private independent trust, and its Board of Trustees
governs the Plan and Fund, focusing on HOOPP’s mission to deliver on our
pension promise. The Board is made up of appointees from the Ontario
Hospital Association (OHA) and four unions: the Ontario Nurses’
Association (ONA), the Canadian Union of Public Employees (CUPE), the
Ontario Public Service Employees' Union (OPSEU), and the Service
Employees International Union (SEIU). This governance model provides
representation from both employers and members in support of the
long-term interests of the Plan.
HOOPP's new research on "The Health Impacts of a Pension" can be found here.
Below, I post the highlights:
The Healthcare of Ontario Pension Plan (HOOPP)
commissioned The Behavioural Insights Team (BIT) to conduct a global
literature review identifying the health impacts of pensions* and an
industry-first online study** investigating the impact of having a
defined benefit (DB) pension on individuals’ financial stress and
well-being pre-retirement. The findings of this research are detailed in
the two-part report The Health Impacts of a Pension.
The research suggests:
Having a pension improves individuals’ mental, physical and social health†.
For workers with a DB pension, just being reminded of their pension is enough to improve their sense of financial well-being††.
Key findings
The literature review provides a clearer understanding of the
positive individual health outcomes associated with having a pension and
identifies areas where further study would be beneficial.
The findings suggest having a pension promotes several positive health outcomes for individuals, including:
Findings from the literature review also suggest
that more research is needed into the health impacts of pensions on
pre-retirement workers, the effects associated with specific types of
pensions (e.g., DB pensions, defined contribution pensions, etc.) and
how to maximize the health benefits linked to having a pension.
To help fill these gaps, an online study was then conducted to
investigate how having a DB pension impacts financial stress and
well-being for pre-retirement Canadian workers. As part of the study, DB
pension members were randomly divided into two groups: one group was
prompted to think about their pension while the other group was not.
Participants then responded to standardized scales measuring their
financial stress and financial well-being.
A secondary study of Canadian workers without a pension allowed for a
comparison of their levels of financial stress and well-being with
those of the DB pension members who were not prompted about their
pension.
The online study found:
Why it matters
When individuals have good pensions, they live longer, healthier
lives. This, in turn, benefits the broader healthcare system by reducing
the number of Canadians suffering from financial stress-related
physical and mental health conditions.
A better understanding of the relationship between pensions and
individual health will be key to improving health outcomes for Canadians
of all ages, before and during retirement. The Health Impacts of Pensions opens the door to more meaningful
research on this important topic.
*The literature review included
research into public pensions and “high-quality” workplace pensions,
including DB and other types of pension plans.
**The online study was a randomized
controlled trial, a scientific study where participants are randomly
assigned to different groups to test the effectiveness of a treatment or
intervention.
†Understanding the effects of having a pension on health and well-being (2024). Literature review. Healthcare of Ontario Pension Plan and The Behavioural Insights Team.
††The impact of having a defined benefit pension plan on well-being (2024). Online study. Healthcare of Ontario Pension Plan and The Behavioural Insights Team.
You can download Part 1 of the study here, Part 2 here and download the results deck here.
I want to reiterate what Ivana Zanardo, HOOPP’s Head of Plan Services, stated:
“Stress – including stress about your financial situation – is a key
factor influencing both physical and mental health. This new research also suggests women
in the workplace are experiencing higher levels of financial stress and
lower levels of financial well-being than men.”
The economic benefits of having a pension are well known and contribute
to financial security in retirement. There is growing evidence based on
research by academics from around the world that financial stress can
lead to serious health problems, but having a pension can reduce that
stress. HOOPP commissioned this research to better understand how
pensions contribute positively to our members’ health and well-being.”
The study is looking at the health impacts of having a pension and they are huge.
Ask any teacher, police officer, fireman, civil servant what is the biggest advantage of their job and the first thing they'll mention is a secure pension which will allow them to retire stress free knowing they will have steady inflation-adjusted income coming in for the rest of their life.
This isn't the case for most people working in the private sector where they need to save and invest wisely to build sufficient savings to be able to retire and then they worry about not outliving their savings.
The findings to not surprise me in the least and the link between health and a good pension suggests that providing a DB pension isn't only a smart move for the long-term health of the economy, it's a smart move for the long-term health of our citizens.
Here is what Jeff Wendling, President and CEO of HOOPP who is retiring next month posted on LinkedIn:
The research highlights
several interesting findings, but what stood out to me was how even
thinking of their pension can improve pre-retirement workers’ sense of
financial well-being. This shows how critical pensions are – not just
for retirement security but also for influencing overall well-being.
This inspires us to keep working hard to support our members and
continue advocating for broader access to retirement benefits in support
of healthier lives for all Canadians.
And HOOPP offers all its employees an amazing pension plan, the one they manage!
Lastly, I remember my mom telling me many years ago after I was diagnosed with MS to go work in the federal government.
Little did she or I know that's it's a mafia and nearly impossible to get in there unless you know the right people, just like all these places which offer a good pension, good luck trying to get in.
Anyway, my personality isn't made for civil service, I'd be bored to death, so I live with financial stress of trading these schizoid markets and will likely die younger but more satisfied with my accomplishments.
But for the majority of Canadians who have no clue how to trade for a living and do not want that huge stress, I think this research demonstrates why our leaders need to step up to the plate and figure out how we can provide all our citizens a defined-benefit plan, not just those working in the public sector.
Below, a report last year by accounting and insolvency firm MNP revealed that nearly two years of rapid-fire interest rate hikes and high inflation are taking a toll on Canadian household budgets and mental health.
Financial experts are concerned about the trend and suggest that people should take proactive measures to manage their finances and seek professional help if needed.
Global's Anne Gaviola explains.
Also, Canada is taking an important step towards launching a long-awaited national disability benefit.
The new measure was unveiled in the latest federal budget and payments are expected to begin at in July 2025.
The Liberals say the program is meant to help lift Canadians living with disabilities out of poverty but as Mike Armstrong reports, critics say the funding isn’t even close to what’s needed.
If you want to know who is living with real financial stress in Canada, it's our most vulnerable citizens who have been ignored for decades. Shameful.
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