With the cost of living on the rise, many 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% say living costs negatively impact their savings.
Over half of the respondents worry they don’t have enough money to retire. This is often due to a lack of confidence in finding quality information. Effective retirement planning is crucial for feeling prepared when exiting the workforce.
"There are many factors to consider when saving for retirement," says Eric Monteiro, Senior Vice-President of Group Retirement Services at Sun Life. "Planning can significantly affect someone's ability to retire. It's essential to envision your retirement and build a roadmap to get there."
Digital engagement improves savings
The study highlights that digitally engaged employees tend to have better retirement outcomes. These members not only save more but also feel more confident about their plans.
Key findings from Sun Life's "Designed for Savings: Digital Engagement" report include:
• Digitally engaged members have an average savings balance 230% higher than those who are not engaged ($123,800 vs. $51,800).
• They contribute 61% more to their savings accounts ($8,700 vs. $3,400).
• They are twice as likely to maximize employer matching contributions, with 61% doing so compared to 30% of non-digital members.
Additionally, digitally engaged members are more likely to make lump sum contributions and withdraw less from their savings, underscoring the positive impact of digital tools.
"It's important that people not only prepare for retirement but feel confident in their decisions," Monteiro adds. "Those who regularly log in online see the long-term benefits of digital tools. These numbers show how technology can empower people to take control of their financial future."
Sun Life's new retirement planning tool
Sun Life has launched a new Retirement Planner powered by Sun Life One Plan. This tool offers a financial assessment in less than five minutes, providing personalized insights and projections. Members can also consult licensed advisors to create detailed financial roadmaps, enhancing their retirement planning.
As Canadians face rising living costs, leveraging digital tools and professional advice can significantly improve their financial security and peace of mind for the future.