UK and Canada retirees confront pension gaps and seek alternative funding

In the United Kingdom, many people approaching retirement are under‑prepared. Median defined‑contribution pension pots remain well below £100,000, while a comfortably funded retirement is estimated to require about £43,900 per year. Relying on an inheritance is uncertain because the amount received can vary widely depending on tax, timing and the size of the estate.

In Canada, only roughly 18% of the population are active members of a registered pension plan, leaving the majority to depend on defined‑contribution schemes that shift all funding risk to the individual. Financial advisers recommend building a DIY pension using high‑quality dividend‑paying stocks or ETFs, such as the Vanguard FTSE Canadian High Dividend Yield Index ETF, to generate a regular cash flow that can supplement retirement income.