The Workforce is Changing: Is Retirement Security Keeping Up?

The Association of Canadian Pension Management is exploring key trends shaping the future of retirement security in an ongoing series of articles.

The traditional employer-employee relationship is evolving, with more Canadians working in non-traditional roles, from freelancers and independent contractors to gig workers and self-employed professionals. This shift offers greater flexibility but comes with significant retirement security challenges. Unlike traditional employees, many gig workers lack access to employer-sponsored pension plans, automatic payroll deductions, and other structured savings mechanisms that help build long-term financial security.

With nearly one in five Canadian workers participating in the gig economy, the question becomes: How do we modernize the retirement system to reflect today’s workforce realities?

The Gaps in the System

The Canadian retirement system is largely designed for individuals with steady, full-time employment. It provides tax incentives for workplace pension plans and employer-matched savings programs, but gig workers often face:

• Lack of access to employer-sponsored retirement plans, such as DC pensions and RRSP matching programs.
• Irregular income, making it harder to contribute consistently to retirement savings.
• Lower contribution room due to the absence of employer-matching contributions.
• Minimal social protections, such as CPP enhancements that benefit traditional workers with long, stable careers.

These challenges contribute to a widening gap in retirement readiness, particularly for younger workers, women who are overrepresented in the gig economy, and those without access to wealth-building assets like homeownership.

Potential Solutions: A More Inclusive Retirement System

Several policy and industry initiatives could help expand retirement security for gig workers.

Expanding Access to Group Retirement Plans

New models such as Pooled Employer Plans (PEPs) or Multi-Employer Pension Plans (MEPPs) could allow gig workers to contribute to a shared plan, reducing administrative costs and providing professional investment management.

Portable Benefits and Savings Accounts

Countries like the U.S. and the U.K. are exploring portable benefits programs, where contributions follow workers across jobs. A Canada-specific portable retirement savings vehicle could help gig workers build long-term security, regardless of employment status.

Improved Tax Incentives for Self-Employed Retirement Savings

The introduction of automatic savings mechanisms, enhanced RRSP incentives, or preferential tax treatment 

for gig worker retirement contributions could encourage more consistent savings habits.

Government-Sponsored Auto-Enrolment Programs

Some jurisdictions are testing auto-enrolment retirement programs for self-employed workers. Canada could expand CPP/QPP options or create a default retirement savings plan for independent workers, offering flexibility while ensuring participation.

The Role of Employers, Policymakers, and Industry Leaders

While gig workers are independent, they still contribute to the broader economy. Their financial security in retirement will have long-term implications for social programs, economic stability, and government policy. A collaborative effort between policymakers, financial institutions, and employers is needed to ensure these workers do not fall through the cracks.

"Retirement security should evolve alongside the workforce. As more Canadians shift to non-traditional employment, we need policies that ensure they have the same opportunities to save for the future. ACPM is committed to advocating for solutions that reflect the realities of today’s workforce," says Chuck Bruce, Chair of ACPM’s Board of Directors.

As retirement security evolves, ACPM remains committed to advocating for a modernized system that reflects today’s workforce realities. The conversation on gig worker retirement security is just beginning, but it is one we cannot afford to ignore.

ACPM is the leading advocacy organization for plan sponsors and administrators in the pursuit of a balanced, effective and sustainable retirement income system in Canada. We are the voice of retirement plan sponsors, administrators and trustees in the private and public sector and our membership represents retirement income plans that cover millions of plan members.