Most Ontarians say they want defined benefit (DB) pensions, and they are concerned that there could be an increase in poverty among seniors without them.

The Ontario Retirement Security Research report, conducted by the Gandalf Group for the Healthcare of Ontario Pension Plan (HOOPP), shows that most people in the province want the kinds of features that DB plans provide, and they are worried about what retirement might look like for those who do not have them.

Asked about the kind of pension people should have, 77% of those surveyed said that all workers should have a pension that guarantees a percentage of their working income in retirement. The same number also said they would prefer a pension that is based on what they earned rather than a pension with payouts that vary according to fluctuations in the stock market.

If people are not able to access good workplace pensions and contribute during their working lives, 84% of respondents said they believe they will become a burden on the taxpayer, and 85% believe that Canadian seniors will fall into poverty.

The study suggests that the DB model, which makes contributions mandatory and offers a benefit tied to workplace income, may be best way of delivering the kind of retirement income people both want and need.

"A growing body of research by various groups shows that Canadians are becoming more worried about their ability to save enough to fund their own retirement in the absence of good workplace programs," concludes the report. "Saving is difficult. Recent Bank of Canada reports show the average household owes about $1.63 for every dollar it earns, making saving difficult if not impossible."