The federal government will invest nearly $30 million over two years to help personal support workers build retirement savings through a new pilot program.
Employment and Social Development Canada announced Tuesday it selected Common Wealth Pension Services Inc. to deliver the Personal Support Worker Retirement Savings Innovation Program. The company will offer incentives for eligible PSWs to open retirement accounts and match portions of their contributions.
The program aims to enroll more than 5,000 personal support workers and help them build over $40 million in retirement savings over 24 months, according to the government.
Addressing workforce retention challenges
The initiative targets retention issues in Canada’s care sector by improving financial security for workers who often lack workplace retirement benefits. Nearly 400,000 personal support workers operate across hospitals, long-term care facilities and home care settings nationwide, according to government data.
The majority of PSWs are women, immigrants or racialized people earning modest to low incomes, often working multiple jobs with limited benefits coverage, the government said.
“A strong economy depends on a thriving care sector and the hard workers behind it,” said Patty Hajdu, Minister of Jobs and Families. “Through these measures, we’re supporting personal support workers by helping them build a financial safety net and retire with confidence.”
Digital platform targets savings gap
Common Wealth operates a digital retirement platform providing group retirement services across Canada. The company partners with the my65+ retirement savings plan, created by SEIU Healthcare union.
“Despite recent improvements such as the CPP enhancement, 11 million Canadians still lack access to a retirement plan at work, and over half have less than $5,000 saved for retirement,” said Alex Mazer, Common Wealth co-founder and CEO.
PSWs can access incentives by enrolling through their phones to create retirement plans and begin saving, according to the company.
Union backing supports worker retention
SEIU Healthcare created the my65+ program specifically for healthcare workers without traditional pension access. Tyler Downey, SEIU Healthcare president, said the funding demonstrates that retention challenges can be addressed through improved retirement security.
“After a career of serving their communities, PSWs deserve a chance to save a little easier and retire with more peace of mind,” Downey said.
The program forms part of the government’s broader healthcare investment strategy. Budget 2023 outlined nearly $200 billion in healthcare spending over 10 years, including $46.2 billion in new provincial and territorial funding.
