Organizations around the world are seeking to better understand and measure their value and impact beyond strictly economic and financial metrics. With the shift in the financial markets towards environmental, social, and governance drivers of value, it is increasingly incumbent upon organizations to understand their value beyond strictly economics and finance and explore their role in generating social value.
This research seeks to understand the social value generated by pension plans that provide a secure and stable source of income in retirement, such as OMERS, by examining reported satisfaction with life among OMERS and non-OMERS populations. The reasons for any differences are investigated, such as the role of financial security, health, stress, and community engagement.
In Ontario, it was found that people with pension plans are consistently more satisfied with life. People with a pension plan are 47% more likely to be more or much more satisfied with life. This is largely due to the reported positive impacts on their long-term financial security, positive impacts on physical and mental health, less stress, and higher community involvement and leisure time.
In monetary terms, the total economic and social benefit received by OMERS retirees in 2020 was approximately $6.57 billion. The higher satisfaction with life is equivalent to about 50% of the annual pensions paid by OMERS, an average annual amount of $12,700 per retired member.