Pensions Unpacked: Globe Advisor’s Best of 2025 on workplace pensions

Globe Advisor’s Pensions Unpacked reviews how workplace pensions, CPP limits, lost pensions, DB risks and retirement-income options affect Canadians’ retirement plans.

Retirement income is often described as a three‑legged stool: government benefits (CPP and OAS), personal savings (RRSPs, TFSAs and other accounts) and employer‑sponsored pensions. Globe Advisor’s Pensions Unpacked series looks at how that stool is holding up for Canadians — noting only 37.5% of workers have workplace pension coverage and that many employer plans today do not offer guaranteed income except for the increasingly rare defined‑benefit (DB) plans. How workplace pensions fit into the retirement income puzzle For most Canadians, CPP alone is unlikely to cover retirement needs: the maximum annual CPP for someone turning 65 in 2025 is about $17,200 (before taxes), and only roughly 6% qualify for the maximum. That makes workplace pensions an important complement to CPP and personal savings. Options for those without a workplace pension Advisors are being asked to create pension‑like incomes using alternatives such as tontines, segregated funds, individual pension plans for business owners and tapping home equity via reverse mortgages. Survivor benefits on DB plans Many members know their DB annual payout but less often understand survivor options; a common default is for a surviving spouse to receive 50% of the pension benefit, though plans typically offer several percentage choices. Buybacks and boosting guaranteed income Employees who missed service or didn’t join a DB plan may be offered buybacks during a limited window; employers often match employee contributions and in some cases contribute more. Bridge benefits and coordination with CPP/OAS Bridge benefits provide extra payments for those retiring before 65 and can affect the timing and size of withdrawals from other retirement sources until CPP and OAS begin. Multiple pensions and tax planning challenges Holding several workplace pensions can complicate withdrawal timing and tax strategies because plans may pay out on different schedules or with differing structures. Lost pensions: scope and recovery Lost or forgotten pensions are a significant issue: a December 2024 National Institute on Ageing report estimated about 200,000 plan members in Ontario alone left roughly $3.6 billion unclaimed. Recovering these amounts can materially improve retirement security. Diversifying when DB plans feel at risk Even with protections such as Bill C‑228’s “super priority” for unfunded pension liabilities, some members worry about DB security; advisors can explore complementary income sources and plan design changes to reduce concentration risk. Workplace pensions within a broader plan Those who take advantage of employer plans are generally further along, but most still need personal savings (RRSPs, TFSAs, non‑registered accounts) to meet retirement targets. Final thoughts and practical suggestions Consider reviewing pension statements and survivor options, checking for lost or forgotten plans, and discussing buyback opportunities with plan administrators. Where workplace coverage is absent or concentrated in a single plan, it may be prudent to consider income diversification strategies and coordinated tax/withdrawal planning with a qualified advisor.