Canadians Struggle with Retirement Planning as Living Costs Rise: Study
A recent study conducted by the Canadian Association of Retired Persons (CARP) for Sun Life has revealed that one-third of Canadians are struggling with retirement planning as living costs continue to rise. The study also found that 75 percent of Canadians believe that their cost of living is negatively impacting their retirement savings.
The survey showed that more than half of the respondents fear they do not have enough money saved up for retirement. This lack of confidence is further exacerbated by the difficulty in finding quality information on retirement planning. Effective retirement planning plays a crucial role in how prepared individuals feel when they eventually leave the workforce.
Eric Monteiro, senior vice-president of Group Retirement Services at Sun Life, emphasized the importance of planning for retirement. He stated, “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.”
The study also found that digitally engaged employees have higher retirement savings balances compared to those who are not engaged. These digitally engaged individuals contribute more to their savings accounts and are more likely to maximize their employer match. 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 the benefits of digital tools in retirement planning. Monteiro emphasized the importance 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.”
To assist Canadians in their 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 create a comprehensive financial roadmap for their future.
As Canadians continue to struggle with retirement planning amidst rising living costs, the use of digital tools and personalized financial assessments can help individuals feel more confident and prepared for their retirement.