As changes come to workplace pensions and some private companies look to phase them out, Canadians are increasingly going to be responsible for their own retirement funds.
Frank Dakos, manager of the Investment Planning Council of Canada, says "It's unfortunate they way business has developed over the last 20 years. Companies are getting away from pension plans. They might have group RRSPs but a lot of companies don't have anything."
The public system is also facing increasing pressures to cut large budgets, and that also means there will be less support for aging Canadians.
Private workplace pension date back to before the Second World War, but at that time the market place was smaller and most workers didn't live beyond the age of 65.
Now with rising costs and global competition, many companies say pensions are simply too costly.
Most people's retirement income will include; universal benefits for seniors, the Canada Pension Plan, employment pension plans and individual retirement savings.
If you have an employment pension plan, you likely have one of two major types, a defined benefit plan or a defined contribution plan.
Many government or education sector employees have a defined benefit plan, which gives retirees a guaranteed monthly income. Some private sector employers also offer it, though it is increasingly being phased out.
University of Waterloo economist Larry Smith says "Those plans were put in place when the Canadian economy was partially insulated from the competitive pressure of the rest of the world."
A defined contribution plan does not guarantee the level of pay someone receives once they have retired.
The amount paid depends on how much is contributed and the performance of the investments.
In the latter, as with people who have no workplace pension, the onus is on the individual to save and invest enough to ensure they will be comfortable in retirement.
But experts say even as fewer plans are offered, saving enough is getting more and more difficult.
Towers Watson, a pension consulting firm, says over the last few years Canadian pensions have taken a hit, with the recession accelerating the decline in plan membership.
At the same time, large companies like Air Canada and Canadian Pacific Railway say massive pension deficits are posing big problems.
If those types of companies don't recover that could mean even retirees with defined benefit plans may get lower pensions and benefits.
Coming up in part three: While Canadians want to retire younger, many aren't saving enough to make that a reality.
