Canadians save more for retirement with digital tools, despite cost-of-living pressures
With rising cost-of-living pressures, Canadians are finding it difficult to plan and save for retirement.
A study by the Canadian Association of Retired Persons (CARP) for Sun Life reveals that one-third of Canadians struggle with retirement planning, and 75 percent report that their cost of living negatively affects their retirement savings.
Over half of the respondents worry they do not have enough money to retire. While financial situations vary, some people lack confidence in where to find quality information. Effective retirement planning can significantly impact how prepared individuals feel when they leave the workforce.
“There are many factors to think about for Canadians when it comes to saving for retirement,” says Eric Monteiro, senior vice-president, Group Retirement Services, Sun Life.
“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.”
Employees who engage digitally with their retirement plans save more money, feel more confident, and achieve better retirement outcomes. The benefits of digital engagement include:
- Digitally engaged members have an average balance 230 percent higher than those who are not engaged ($123,800 versus $51,800).
- Digital members contribute 61 percent more to their savings accounts than non-digital members ($8,700 versus $3,400).
- Digital members are twice as likely to maximize an employer match, with 61 percent doing so compared to 30 percent of non-digital members.
Engaged members are also more likely to make lump sum contributions and withdraw less from their savings.
Sun Life's ‘Designed for Savings: Digital Engagement’ report, based on data from 1.45 million Group Retirement plan members, shows a strong link between digital engagement and better retirement readiness.
“It's important that people not only prepare for retirement but feel confident in their decisions. Those who regularly log in online clearly see the long-term benefits of using digital tools. These numbers show how technology can help people take control of their financial future,” said Monteiro.
Sun Life recently introduced their new retirement planner powered by Sun Life One Plan. This tool, available to plan members, provides a financial assessment in less than five minutes, offering personalized insights and projections to help people plan their ideal retirement.
Members can also seek advice from licensed consultants to create a detailed financial roadmap and explore a lifetime of possibilities.
