Can pension plans boost productivity?

Provision of meaningful pension pays dividends
By Derek Dobson
|Canadian HR Reporter|Last Updated: 10/30/2017

Employees with financial worries are likely to be distracted and less productive at work, making their financial stress their employer’s concern. But an employer’s workplace pension plan could reduce that stress, while also playing a part in attraction and retention.

Forty-seven per cent of Canadians report high stress about running out of money after retirement. And 51 per cent say retirement-planning stress has a medium to high impact on their work, according to a 2016 survey of more than 1,000 workers, commissioned by the Canadian Public Pension Leadership Council (CPPLC).

An American study published this summer echoes the CPPLC’s findings. It examined employer benefit costs over a 15-year period at 500 employers with at least 200 employees. It also analyzed employees’ concerns, expectations and desires for benefits. Workers are worried about their present and future finances, and about half often worry about their financial future, according to “Shifts in Benefit Allocations Among U.S. Employers: How Can Employers Better Deliver the Benefits Their Employees Want?” by Willis Towers Watson.