You can't take it with you: Analyzing exemptions to the locking-in of private pensions in British Columbia

This study examines why some current and former private pension plan members and beneficiaries with the ability to unlock some or all of their pension savings chose to so do and uses these findings to assess and recommend alternatives to the current locking-in of private pension benefits in British Columbia. The primary source of information is a survey of members of the Cana dian Association for the Fifty Plus, which reveals that, given the opportunity, 29 per cent choose to unlock for mostly re-investment purposes. Detailed statistical analysis further reveals that respondents with less conservative investment preferences, lower household income and smaller pensions are more likely to unlock. The policy alternatives are assessed on the basis of cost to government, stakeholder acceptability, effectiveness and taxpayer risk. This study recommends that British Columbia repeal its existing provision for unlocking of small monthly pensions and adopt 25 per cent unconditional unlocking.