We believe it is possible to create large-scale collective retirement plans that meet the needs of a 21st century economy and labour force. The “technology” of the pension needs to be adapted to the challenges workers face. This can be achieved through collaborative partnerships with unions, associations, sectors, groups of employers, and other communities

Traditionally workers have relied on their employer to provide retirement benefits. Now a growing number of workers outside the public sector lack access to a workplace retirement plan and as a result, are much more likely to be financially unprepared for retirement. Collective, members-first retirement income plans are the best way to build retirement security for the vast majority of people.

The best retirement and pension organizations in the world rely on a number of value drivers to help their members achieve retirement security

Low Costs

The cost of a large-scale collective retirement plan is about a third of that of a typical mutual fund.

Mandatory or automatic savings

Participants in a workplace retirement plan with mandatory or automatic savings tend to save earlier, more consistently, and in larger amounts than individual savers.

Investment behaviour and performance

Individual investors tend to perform consistently worse than participants in a high-quality collective retirement plan.

Good governance and fiduciary duty

Participants in plans with a good governance structure and/or a fiduciary duty to put members’ interests first tend to fare significantly better than those who participate in structures where shareholders’ interests come first.

Risk pooling

Collective retirement plans can help insure members against common risks associated with retirement, including the risk of a market downturn at the wrong time and the risk that you will outlive your money.

The Healthcare of Ontario Pension Plan (HOOPP), one of Canada's leading pension plans, commissioned Common Wealth to prepare an in-depth report on the value of collective retirement plans, in collaboration with the National Institute on Ageing


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