Big Jump in the Number of Canadians With Pension Plans
An additional 293,500 Canadians enrolled as members of a registered pension plan in 2023, Statistics Canada data released Tuesday showed.
According to a StatCan report, the number of Canadians who were active members of a registered pension plan (RPP) grew by 4.2 per cent to a total of roughly 7.2 million in 2023.
Of these, 4.9 million members were part of a defined benefit plan, which is a type of pension plan in which an employer or sponsor promises a specified pension payment, lump sum or a combination of the two on retirement.
In a defined benefit plan, the pension amount depends on an employee’s earnings history, tenure of service and age, rather than on individual investment returns.
This is in contrast to defined contribution plans, in which the employee’s pension benefits are determined by the size of their pension pot at retirement, rather than by a predetermined formula based on their salary and service.
Employees have control over investment choices, and the benefits are not guaranteed. The number of new members in defined contribution plans rose by 65,300 members, an increase of 5.1 per cent compared with 2022.
The number of Canadians enrolling in pension plans outpaced the employment growth rate. According to the Labour Force Survey, employment grew by 690,844, or 3.8 per cent, during the same period.
More women than men joined RPPs between 2022 and 2023. There were 150,700 more women with membership in an RPP, an increase of 4.2 per cent from 2022 to 2023, taking their number beyond 3.7 million.
The number of men with active RPP memberships increased by 142,800 in 2023 compared with one year earlier, bringing their total membership to just over 3.5 million. Women’s share of active memberships held steady at 51.3 per cent in 2023.
Memberships were up across the country, with all provinces except Manitoba seeing an increase in enrolments. There were 1,300 fewer Manitobans enrolled in RPPs compared with the previous year.
The largest number of new RPP members was in Ontario, which saw 161,800 new members. This was followed by Quebec with 54,800 new members, British Columbia with 32,000 new members and Alberta with 18,700 new members.
This is good news, more Canadians are now being covered by registered retirement plans (RPPs) and the bulk of these new plans are defined benefit plans.
Moreover, more women than men joined RPPs between 2022 and 2023 and that is also critically important as women have struggled to keep up in retirement and this needs to change.
Last week, I discussed pension expert Sebastien Betermier's thoughts on bolstering Canada's retirement system.
I also recently discussed HOOPP and Abacus Data's 2025 Canada Retirement Survey.
Among the key findings:
- Fifty-nine per cent of unretired Canadians do not think they will ever be able to retire due to their financial situation. Half (49%) have not set aside any money for retirement in the past year and 39% have never saved for retirement.
- Nearly two-thirds (62%) of Canadians view homeownership as a key part of their retirement strategy, either as a financial investment or a source of stability in retirement and as part of their strategy, half (50%) of unretired homeowners plan to rely on the sale of their home to set themselves up for retirement.
- More than a third (36%) of Canadians report having less than $5,000 in savings, including for retirement, and one-in-five (20%) have no money saved. Those who do not own a home are significantly more likely to have less than $5,000 saved (57% vs. 19% of homeowners).
- An overwhelming majority of Canadians (88%) would choose to pay 9% of their salary, with contributions matched by their employer, to a DB pension plan in exchange for a lifetime income in retirement.
It is clear that we lack proper coverage especially in the private sector and until this changes, most Canadians will experience a difficult retirement.
This week, I was pleased to learn SickKids staff will join hospital workers across Ontario as members of HOOPP:
The Healthcare of Ontario Pension Plan (HOOPP) and The Hospital for Sick Children (SickKids) are pleased to announce that SickKids employees will become members of HOOPP’s defined benefit pension plan, effective Dec. 29, 2025. This means all hospitals in the province will soon be HOOPP employers.
“HOOPP is one of the strongest and most stable pension plans in Canada and offers its members a secure pension for life,” says Rachel Arbour, HOOPP’s Head of Plan Benefits, Design and Policy. “We look forward to working with SickKids employees over the coming months to help and support them as they transition into HOOPP.”
Susan O’Dowd, Vice-President, Human Resources and Commercial Services at SickKids, notes that the move follows staff feedback about SickKids’ current defined benefit pension plan. “After thorough review and careful consideration, we determined that transitioning all future service into HOOPP is the most viable path forward,” she says. “Enhancing our pension plan and joining HOOPP is not only something many staff have been asking for, but also a logical step for SickKids as it aligns us with the broader sector.”
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, physicians and many others who provide valued healthcare services. In total, HOOPP has more than 478,000 active, deferred and retired members.
Almost all active members currently in SickKids’ defined benefit plan will be joining HOOPP for future service, which enables current defined benefit pension plan members to continue to grow their existing SickKids pension, even after the move to HOOPP. While most staff can look forward to an enhanced pension, a small group of staff, who would be disadvantaged by this change, will remain in the SickKids pension plan. “Moving to a ‘future service’ model protects the value of past contributions and service, which retain their full value. While past contributions and past service will remain with the SickKids plan, staff members' years of service with SickKids will also count towards HOOPP’s early retirement calculations.” says O’Dowd.
SickKids staff who have already retired, will retire before the end of 2025, or left SickKids and deferred their pension will receive a SickKids pension only.
“HOOPP offers value and high-quality retirement benefits to workers across more than 700 employers,” says Arbour. “Workers at SickKids are important members of Ontario’s healthcare community and we look forward to helping them build a stronger financial future.”
About the Healthcare of Ontario Pension Plan
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, physicians, and many others who provide valued healthcare services. In total, HOOPP has more than 478,000 active, deferred and retired members.
HOOPP is fully funded and manages a highly diversified portfolio of more than $123 billion in assets that span multiple geographies and asset classes. HOOPP is also a major contributor to the Canadian economy, paying more than $3 billion in pension benefits to retired Ontario healthcare workers annually.
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.
About SickKids
The Hospital for Sick Children (SickKids) has been changing the game for paediatric health care since it became the first children’s hospital in Canada in 1875. Affiliated with the University of Toronto, SickKids is one of Canada’s most research-intensive hospitals and has generated discoveries that have helped children globally. Its mission is to provide the best in complex and specialized care; promote a culture centred around patient and family experience; pioneer scientific and clinical advancements; foster an academic environment that nurtures health-care professionals; and champion an accessible, comprehensive and sustainable child health system. In 2025, SickKids is celebrating 150 years of excellence in children's health, continuing to advance Precision Child Health, its groundbreaking movement to deliver individualized care, including responsibly using artificial intelligence to improve clinical care and research. SickKids is proud of its vision for Healthier Children. A Better World. For more information, please visit www.sickkids.ca.
I can't think of a more deserving staff in Canada to join HOOPP.
And there are more potential members for HOOPP, like private radiology clinics across Ontario that are booming (a friend of mine is the radiologist based here in Montreal that reads most of the cases).
Anyway, the point is we need to fill a gap and address the growing demand for a solid pension that Canadians can count on for life.
In my opinion, the looming Canadian retirement crisis is real and it's a huge policy blunder that federal and provincial governments never adequately addressed it.
HOOPP, OPTrust, CAAT Pension Plan, UPP, IMCO and others are doing their part but a lot more needs to be done.
We can't wait decades for enhanced CPP to kick in, we need to figure out ways to cover more Canadians in the private sector so they can retire in dignity.
I keep saying this, smart retirement policy is smart economic policy over the long run, and it has nothing to do with your political beliefs (I'm a right of center Conservative and strongly believe things need to be drastically changed).
Below, Michelle Munro, Director of Tax and Retirement Research, discusses the results of Fidelity Canada’s 19th retirement report survey where 2,000 Canadians were surveyed coast to coast on their retirement planning (July 2024).
Also, step into the past and explore how SickKids' campus has evolved and expanded since its founding in 1875. From its humble beginnings in an 11-room residential home, the hospital's campus grew to better support the three pillars of the organization: care, learning and research.
Lastly, paediatric health care has long been limited by boundaries, traditions and old ways of doing things. But that’s about to change. "Through our new five-year strategy, SickKids 2030, we’re rewriting the rules. We will no longer accept a world where children’s health is determined by averages and a one-size-fits-all approach."
Like I said, this is an incredible organization and their staff deserve and incredible pension plan that covers them for life.
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