The Case for a National Pension Dashboard
A pension dashboard that consolidates all of an individual’s pension and retirement information using pre-populated data would make it significantly easier for Canadians to access and understand their retirement savings, according to a new report by the C.D. Howe Institute.
“Canada’s current retirement landscape offers numerous savings vehicles, giving individuals more choices than in the past,” said the report. “Yet, as retirement vehicles shift increasingly toward defined contribution plans with uncertain payouts, it becomes harder for Canadians to gauge their future retirement income.
“In the face of multiple account balances, government retirement benefits that are difficult to predict as well as unpredictable factors like investment returns and longevity, Canadians need clearer guidance and consolidated information.”
According to the report, a pension dashboard could include an individual’s entitlements from employer-sponsored retirement plans as well as government programs such as the Canada and Quebec Pension Plans and any private savings if added to the dashboard by the individual.
It noted several countries already use pension dashboards, including Australia, Belgium, Denmark, Israel, the Netherlands and Sweden, while the U.K. is currently finalizing its own pension dashboard and a similar initiative is under discussion in the U.S.
“As policymakers look abroad for best practices, it will be essential to tailor any pension dashboard solution to the nuances of the Canadian retirement system, ensuring it addresses the distinct mix of public and private savings vehicles.”
The report also outlined several considerations regarding cost, privacy and user engagement. Setting up and maintaining a national dashboard would require investments from one or more of the stakeholders, including governments and plan sponsors, it noted.
In addition, any system providing access to detailed financial information would require robust security protocols to ensure data is both protected and accessed only by authorized individuals. “Technological developments, including [artificial intelligence] and open-banking initiatives, if expanded beyond bank accounts, would make it increasingly necessary to adopt a more secure live-request model rather than a less secure, large and centralized database.”
User adoption of the dashboard is equally critical, said the report, noting if the interface is cumbersome or difficult to navigate, individuals may not take advantage of the tool.
“Canada already has partial infrastructure and data sources that could be adapted to build a comprehensive pension dashboard and many experts believe AI could further streamline data collection from government registries, financial institutions and private pension administrators. This automation could reduce operational costs and ease the burden on plan sponsors, who would otherwise have to submit data manually.”
You can read the C.D. Howe Institute report, Roadmap for Retirement: The Case for a National Pension Dashboard, by clicking here.
It was written by Kathryn Bush, senior fellow at the C.D. Howe Institute, and here are the main points:
- Retirement planning is getting harder for Canadians as more savings shift to defined-contribution plans, and account information is scattered across institutions. Given current financial literacy levels in Canada, many people struggle to understand what they’ll have to live on in retirement. A pension dashboard could help by bringing all their retirement savings and benefits into one place.
A
pension dashboard is a government or government-sanctioned online tool
that shows individuals all their retirement income sources – including
government benefits, workplace pensions, and potentially personal
savings – in a single view. Countries like Australia, Sweden, and the
Netherlands have already launched similar tools to improve planning and
reduce lost or forgotten accounts.- For
a pension dashboard to succeed in Canada, it needs to be secure, easy
to use, and developed with support from both federal and provincial
governments. With recent advances in artificial intelligence (AI) and
data reporting, this kind of tool is now more practical and timely than
ever.
I have nothing against a national pension dashboard as long as it also has a financial literacy section going over basic concepts and more complex topics.
I mean the majority of Canadians don't know the difference between a stock and bond, let alone a dividend and a bond yield, then what's the use of providing a national pension dashboard which only 10% of the population will use?
The way I measure success of any program the government is launching is simple, what is the outcome we are looking for and can we measure it with a degree of certainty to gauge the success of such a program?
I couldn't care less if Australia, Belgium, Denmark, Israel, the Netherlands, Sweden, UK and the US are using one or are in the process of using one, I'd like to know how they measure success as well.
Still, I welcome Kathryn Bush's report and agree with her here:
What is Required to Establish a Canadian Pension Dashboard?
Establishing a Canadian pension dashboard will require coordinated efforts among multiple stakeholders and careful attention to resource constraints, privacy protections, and user experience. First, cooperation among federal and provincial governments is essential, given that pension regulations span different jurisdictions. Both levels of government will need to align policy goals, data-sharing protocols, and any enabling legislation to ensure consistency in how retirement information is collected and presented.
Regulatory backing is also critical. Pension regulators across Canada have expressed support for such an initiative, but they must be prepared to provide ongoing oversight and resources. Clear guidelines for data reporting, user access, and privacy safeguards will be necessary so that practices remain consistent across provinces and plan types.
A pension dashboard must be easy to find and intuitive to use for individuals at all levels of financial literacy. This requires a user-friendly interface, straightforward instructions, and potentially mobile accessibility. Ensuring that the tool is free for users will further broaden its reach, removing a possible barrier for those who might otherwise hesitate to adopt it.
Limiting the establishment and maintenance costs is another crucial factor. Governments, plan sponsors, and pension providers may resist participation if the overall expenses are too high. Leveraging existing infrastructure and advanced technologies, such as AI or open banking, will help avoid duplicating effort. Nonetheless, some costs will be unavoidable, and stakeholders will need to determine an equitable way to cover them – whether through government funding, industry contributions, or minimal advertising revenue – while preserving the dashboard’s integrity and broad accessibility.
The existence of a pension dashboard would need to be widely communicated to Canadians, potentially through statements from CPP, QPP, OAS, private pensions, and RRSPs. Ongoing communication would also be necessary to maximize its usage. Private retirement calculators have seen less than optimal uptake (Shen et al. 2024).
Conclusion
A well-designed pension dashboard offers clear advantages for Canadians by making retirement planning more accessible, consolidating important financial information, and safeguarding users’ privacy. As long as it can be developed and operated at minimal additional cost, maintain robust data protection, and remain user-friendly, it is unlikely to encounter significant opposition.
With the Canadian Retirement Income Calculator as a starting point, recent advances in AI and enhanced data collection by governments, Canada now appears well-positioned to move forward with a pension dashboard. By taking advantage of these resources, policymakers can help Canadians make more informed retirement decisions and strengthen the overall security of the country’s retirement system.
Of course, the best way to strengthen the Canadian retirement system over the long run is to offer all Canadians the same defined benefit pension plan that employees working in the public sector enjoy.
That, in my humble opinion, is far more important than anything else but we aren't there yet.
Below, Parallele Wealth goes through how to actually turn your savings into a retirement income. He goes through the main income sources in Canada including RRIFs, LIFs, TFSAs, CPP, OAS, and more.
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