A study shows one-third of Canadians struggle to plan for retirement due to rising living costs
Many Canadians find it difficult to plan and save for retirement with the rising cost of living.
A study conducted by the Canadian Association of Retired Persons (CARP) for Sun Life reveals that one-third of Canadians struggle with retirement planning, and 75 percent believe their cost of living negatively affects their retirement savings.
More than half of the respondents fear they lack enough money to retire. While financial situations vary, some express a lack of confidence in finding quality information. Effective retirement planning significantly influences how prepared individuals feel when leaving the workforce.
Eric Monteiro, senior vice-president of Group Retirement Services at Sun Life, emphasizes the importance of planning.
He states, “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. Considering what you want your retirement to look like and building a roadmap to get there is essential.”
Digitally engaged employees fare better in their retirement savings. They boast average balances 230 percent higher than those not engaged ($123,800 versus $51,800).
These members contribute 61 percent more to their savings accounts ($8,700 versus $3,400) and are twice as likely to maximize an employer match (61 percent compared to 30 percent). Digital engagement also leads to more frequent lump-sum contributions and fewer withdrawals from savings.
Sun Life's report, ‘Designed for Savings: Digital Engagement,’ highlights these findings using data from 1.45 million Sun Life Group Retirement plan members. The data indicates a strong link between digital engagement and improved retirement readiness.
Monteiro underscores the benefits of digital tools, stating, “It's important that people not only prepare for retirement but feel confident in the decisions they've made. 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.”
To aid in retirement planning, Sun Life recently introduced the retirement planner powered by Sun Life One Plan. This tool offers plan members a financial assessment in under five minutes, providing personalized insights and projections.
Members can also seek advice from licensed consultants to deepen their planning experience and create a comprehensive financial roadmap for their future.
