A third of Canadians struggle to plan for retirement – Sun Life

A third of Canadians struggle to plan for retirement – Sun Life | Insurance Business Canada

Life & Health

A third of Canadians struggle to plan for retirement – Sun Life

What can aid in retirement planning?

Life & Health

By
Terry Gangcuangco

Amid rising living costs, Canadians are finding it increasingly difficult to plan and save for retirement, according to a recent study by the Canadian Association of Retired Persons for Sun Life. It found that one-third of Canadians struggle with retirement planning, and 75% believe their cost of living is adversely affecting their savings for old age.

More than half of those surveyed expressed concerns about not having sufficient funds for retirement. Financial circumstances vary widely, but one issue is a lack of confidence in accessing quality information for effective retirement planning.

“There are many factors to think about for Canadians when it comes to saving for retirement. Planning can significantly affect someone’s ability to retire,” said Eric Monteiro, senior vice president of group retirement services at Sun Life. “Considering what you want your retirement to look like, and building a roadmap to get there is essential.”

According to Sun Life, digitally engaged employees save more, feel more confident in their plans, and achieve better retirement outcomes.

The insurer highlighted that digital members have an average balance 230% higher than non-engaged members ($123,800 versus $51,800); they contribute 61% more to their savings accounts than non-digital members ($8,700 versus $3,400); and they are twice as likely to maximize employer matches, with 61% doing so compared to 30% of their non-digital counterparts.

Additionally, digitally engaged individuals are said to be more likely to make lump-sum contributions and withdraw less from their savings. These insights come from Sun Life’s “Designed for Savings: Digital Engagement” report, which analyzed data from 1.45 million Sun Life Group Retirement plan members, showing a clear link between digital engagement and improved retirement readiness.

“It’s important that people not only prepare for retirement but feel confident in the decisions they’ve made,” said Monteiro, whose camp has introduced a retirement planner powered by Sun Life One Plan. “It’s clear that those who regularly log in online see the long-term benefits of embracing the convenience of digital tools. These numbers paint a vivid picture of how technology can empower people to take control of their financial future.”

The new tool provides a financial assessment in under five minutes, offering personalized insights and projections to help individuals plan for their ideal retirement. Plan members can also consult with licensed advisors for more in-depth planning.

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