Coverage for women falls at a higher rate compared to that of men, StatCan notes
Employers may want to boost the retirement benefits they offer even as the number of pension plan members in Canada grows by six digits, Statistics Canada (StatCan) numbers indicate.
Overall, registered pension plans (RPPs) grew to nearly 7.4 million in 2024, with membership rising by 132,000, or 1.8%, from 2023 to 2024. Meanwhile, employment grew faster, up 2.1% over the same period, according to the Labour Force Survey.
Also, the pension coverage rate, the share of paid workers covered by an RPP, fell to 37.6% in 2024 from 37.7% in 2023. StatCan noted the rate has trended downward since 1977, though it remains above its 2019 pre-pandemic level of 36.9%.
This comes as fewer than half of working-age Canadians have an employer-sponsored pension and most lack even a basic retirement plan, according to a previous report.
Women are getting more out of RPPs
Meanwhile, women are getting a higher coverage rate compared with men. The said rate for women rose by 0.5 percentage points to 41.4%, while for men it fell 0.5 percentage points to 34.3%, the agency reported.
Also, membership growth was stronger among women than men last year. Statistics Canada reported a 2.7% increase among women compared with 0.9% among men, lifting women's share of total active membership to 51.8%.
Women have held a larger share of RPP membership than men in every year since 2017, according to the report.
The gap was sharper in the public sector, where women's membership rose by 100,300, or 4.0%, to surpass 2.6 million, compared with a gain of 57,600, or 4.1%, among men, who reached 1.45 million.
Public sector expands
Public sector plans added nearly 157,900 members, a 4.0% increase, bringing total public sector membership past 4.0 million, Statistics Canada said.
Private sector membership fell by 25,800, or 0.8%, dropping below 3.3 million. Employment over the same period rose 3.7% in the public sector and 1.6% in the private sector.
Within the private sector, defined benefit membership fell by 21,300, or 1.6%, while defined contribution membership dropped by 4,300, or 0.4%, from 2023 to 2024.
Contributions and assets climb
Total employer and employee contributions to RPPs reached $83.6 billion in 2024, up $4.2 billion, or 5.4%, from 2023. Employee contributions made up 42.0% of the total, Statistics Canada reported.
The market value of RPP assets grew by $169.5 billion, or 7.1%, surpassing $2.5 trillion. Just 34 large plans, each with 30,000 or more active members, held 61.6% of total assets while representing 54.6% of total membership.
Many workers are looking for simpler and better retirement plans, according to a previous report.
“Older adults clearly recognise the value of workplace retirement plans, yet this appreciation often comes only in hindsight,” a previous National Institute on Ageing (NIA) report states. “Employers, plan sponsors and administrators struggle to help those who are still working to see what retirees now understand.”
