Canadians are living longer than ever. Many people who retire at 65 can expect to live well into their 80s or 90s—meaning retirement may now last 25 to 35 years or more. But while lifespans have evolved, traditional retirement strategies haven’t. Relying solely on personal savings or investment-based accounts can be risky when retirement stretches over decades.
The core challenge is simple: how do you make your money last as long as you do?
This is where lifetime retirement income—especially through a defined benefit (DB) pension plan—becomes essential.
Why lifetime income is more important than ever
1. Retirement is getting longer
With many Canadians now spending three decades in retirement, the risk of outliving personal savings is significant. A lifetime pension removes this uncertainty and ensures financial security for as long as you live.
2. Markets are unpredictable
Market downturns, inflation, and interest-rate changes can erode savings quickly—especially for retirees who rely on investment accounts. DB pensions shift investment risk away from the individual and onto the plan.
3. Financial confidence improves quality of life
Knowing you have a steady income every month gives you a sense of independence and control over your retirement lifestyle. It also simplifies budgeting and reduces stress about financial decision-making.
4. Lifetime income protects the people you love
A pension with survivor benefits ensures that your spouse or eligible beneficiary remains supported even after you’re gone.
Related: Live long and prosper—financial planning for advanced age
What makes a defined benefit pension different
A defined benefit pension provides monthly income for life. Unlike RRSPs or defined contribution plans, which depend heavily on how markets perform, DB pensions are based on a formula and are paid no matter what’s happening in the economy.
A modern DB plan, such as DBplus, managed by The CAAT Pension Plan and offered through Lawyers Financial, offers several key advantages:
- You get a pension for life. Once you retire, CAAT pays you a monthly pension for as long as you live. That’s true lifetime retirement income—not a balance you draw down until it runs out.
- Your spouse (or eligible survivor) is looked after. The plan includes a survivor benefit—upon your passing, your eligible spouse will receive a lifetime pension that includes inflation protection, a minimum guarantee of payments should you and your spouse both die early in retirement, and pre-retirement death benefits.
- Inflation protection is possible. CAAT provides conditional inflation protection, both while you work and when you retire—helping maintain purchasing power over decades.
- You don’t have to manage investments. CAAT handles all investment decisions, so you don’t have to fret about market swings. This way, you pick your retirement date—the markets don’t dictate it for you.
In short: a DB pension like DBplus delivers security, simplicity, and predictability—very different from “save until you retire, then hope the money lasts”
Build your 100-year life on a strong foundation
As society adapts to longer lifespans, retirement planning must evolve from a “savings-first” mindset to an income-for-life mindset. A DB pension provides a reliable foundation that personal savings and market-based plans simply can’t match.
A defined benefit pension—especially from a strong, well-funded plan like CAAT—provides the stability, protection, and predictability needed to support a retirement that could span decades.
- For individuals, it means dignity, flexibility, and long-term financial confidence.
- For employers, offering a modern DB plan can attract and retain talent, support orderly retirement transitions, and improve overall employee well-being.
- For society, lifetime pensions help create more secure, sustainable retirement outcomes—reducing financial strain and allowing retirees to thrive in their later years.
A longer life is a gift. A lifetime pension helps ensure you can enjoy it with confidence.
Ready to learn more?
DBplus is retirement solution for law firms of all sizes—even one. Book a 30-minute meeting with a pension specialist to learn how to offer your team (and yourself) a pension that promises secure and predictable retirement income for life.
DBplus is a defined benefit pension plan offered by Lawyers Financial and managed by CAAT Pension Plan, a trademark of Colleges of Applied Arts and Technology Pension Plan. The plan isn’t currently available in Québec.
This article was adapted from “100 is the new 65: What comes after the retirement fantasy?” written by Simon Chan, and published by CAAT Pension Plan.
