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Mila Babic explains how adding CFPs and building trust through in-house planning can lead to effective outcomes 

Retirement readiness isn’t just about having a pension; it’s about knowing how to use it. 

According to Mila Babic, pensions without financial planning leave a major gap in retirement readiness.

“We think that a natural complement to the pension plan is understanding how the pension benefit fits into a client's holistic retirement plan,” said Babic, executive vice-president and chief client services officer at the Ontario Pension Board (OPB). “A lot of studies have shown that people don't have the confidence or the financial literacy that they need to be able to navigate some very complex decisions.” 

Babic emphasized that pension-related decisions are often laden with complex information, particularly when tax implications are involved, something members may not  have the time or expertise to unpack. She acknowledged that without a full understanding of all the moving parts of a pension, members risk making choices that are often irreversible, particularly as “good decisions are really the ones that are well informed,” she said.

To address this, OPB offers both digital tools and personalized support. Members can use a self-serve retirement planner online or meet with an advisor to explore details they might have overlooked. Babic noted that their only agenda is to ensure the client’s best interest is at the center of the process. 

“As long as they understand the full picture and we’re there to be able to support them, we believe that’s the right path to set people up for success,” she said.

Over the past decade, OPB has made a series of deliberate moves to embed financial planning into its pension offering, which have reshaped how members engage with their retirement benefits. The most impactful, Babic noted, was building an in-house advisory team of certified financial planners (CFPs) to guide clients through complex financial decisions.

When OPB was designing its financial planning strategy, they looked at multiple options, including partnering with external financial services firms. But Babic acknowledged they realized the complexity of pension plans made outsourcing a poor fit. 

Instead, OPB chose to hire CFPs internally and train them extensively on the pension’s structure and nuances. She explained that this approach gave them greater control over the quality and consistency of advice.

 “Our belief was that by taking CFPs who already had professional designation and had the depth of understanding of the industry and then overlaying pension knowledge was the best solution for us,” she said. “Then we could ensure that not only was there consistency in the services that were being delivered but that they also understood all of those key nuances [like] the limitations in making certain decisions and what the implications are because plan provisions, like service credit rules, vary from plan to plan.”

Babic explained that the organization also developed education programs and workshops in collaboration with both advisors and internal education staff. These sessions are designed to build financial literacy over the course of a member’s career.

Beyond one-on-one advice and group education, OPB reinforced its front-line service by staffing its client care center with professionals holding registered retirement consultant (RRC) designations. These team members are trained to answer general pension questions, and when needed, refer clients to financial advisors for more detailed planning. 

OPB also invested in a digital retirement planner, which Babic said stands apart because “it fully integrates with their current retirement benefit.” This level of integration, she added, helps streamline planning and ensures more accurate projections.

Still, Babic stressed that financial stress is a major concern for many people today and reducing that burden should be a priority for employers and pension plan providers alike, noting that helping employees build confidence in their retirement planning is key to long-term financial well-being.

She asserted that even a defined benefit (DB) plan isn't enough on its own as members need broader education to understand how pensions fit into their overall financial picture. 

“You have to embed it in education programs,” she noted, adding that financial literacy efforts, whether internal or brought in from outside, can make a real impact.

According to Babic, when staff are well-trained and understand the financial landscape, it not only benefits members but also leads to better decision-making across the organization. She sees this as contributing to a healthier workplace culture, where employees feel secure in their financial futures.

While she agrees that retirement planning should begin as soon as someone joins a pension plan, Babic emphasized that the support can’t stop there. OPB sees its role extending well into retirement, helping members navigate decisions around post-retirement work, pension implications, and even estate considerations.

Across the industry, notably in the US, more pension plans are beginning to offer integrated retirement planning tools that factor in both pension income and other sources, said Babic, noting she sees this as a necessary step to improving retirement readiness. 

Babic also underscored the value of ongoing communication and targeted outreach, adding that it’s not enough to simply offer tools as plans must also ensure members understand and engage with them. 

Whether through newsletters or direct engagement, Babic believes the messaging should be tailored to the specific needs of each membership base. OPB, for example, regularly conducts research to stay in sync with its members' concerns. 

“We do a lot of research to understand what are the themes that our clients are interested in so that we can be proactive and respond,” she said.