- One third of Canadians are struggling to plan for retirement, according to a new survey
- Seventy-five per cent say their cost of living is negatively impacting their retirement savings, according to Canadian Association of Retired Persons study for Sun Life.
- A tool to improve people’s savviness in saving for retirement is to be more digitally engaged, according to Sun Life.
- Shares of Sun Life Financial Inc. (TSX:SLF) are up 0.66 per cent, trading at C$67.63 as of 12:16 pm ET.
One third of Canadians are struggling to plan for retirement and 75 per cent say their cost of living is negatively impacting their retirement savings, according to a new survey.
In a Canadian Association of Retired Persons study for Sun Life (TSX:SLF), more than 50 per cent of respondents worried they do not have enough money to retire.
Amidst inflation and the rising cost of living causing increased stress for Canadians, some survey respondents cited a lack of confidence in where to find quality information to prepare for retirement.
“There are many factors to think about for Canadians when it comes to saving for retirement,” Eric Monteiro, Sun Life senior vice president, group retirement services, said in a news release. “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.”
One tool to improve people’s savviness in saving for retirement is to be more digitally engaged, according to Sun Life. The financial services organization asserts that logging-in and being engaged can make a big difference:
- Members who are digitally engaged see an average balance 230 per cent higher than those who are not engaged ($123,800 versus $51,800).
- Digital members contribute 61 per cent more to their savings accounts than those who aren’t online ($8,700 versus $3,400).
- Digital members are two times as likely to maximize an employer match. While 30 per cent of non-digital members maximized that match in 2023, this compares to 61 per cent of digital members.
Those who are digitally engaged are also more likely to make lump sum contributions and are more likely to withdraw less money from their savings.
Sun Life’s Designed for Savings: Digital Engagement report, which used data from 1.45 million Sun Life Group Retirement plan members to identify workplace savings trends in Canada, found a clear correlation between digital engagement and stronger retirement readiness. Those who are digitally engaged are more likely to make lump sum contributions and are more likely to withdraw less money from their savings, the company reported.
Sun Life, which has operations in numerous markets around the world, is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional clients. As of March 31, Sun Life had total assets under management of $1.47 trillion.
Shares of Sun Life Financial Inc. (TSX:SLF) are up 0.66 per cent, trading at C$67.63 as of 12:16 pm ET.
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(Top photo illustration of retirement savings and a ticking clock: Adobe Stock)