'Considering what you want your retirement to look like, building a roadmap to get there is essential'
Amid the rising cost of living, Canadians are struggling to save up for retirement, according to a recent report.
Overall, one-third of Canadians say they are having trouble planning for retirement. And the cost of living is negatively impacting their retirement savings, say 75% of Canadians in the Sun Life survey.
As a result, over half of respondents are worried they do not have enough money to retire.
"There are many factors to think about for Canadians when it comes to saving for retirement," says Eric Monteiro, senior vice-president for 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."
Currently, 57% of unretired Canadians don’t feel prepared for retirement, and almost half (49%) have saved nothing for retirement in the last year, Healthcare of Ontario Pension Plan (HOOPP) previously reported.
When it comes to saving, employees who are digitally engaged are better off compared to their counterparts, according to Sun Life’s report based on data from 1.45 million Sun Life Group Retirement plan members.
Those who are digitally engaged see an average balance 230% higher than those who are not engaged ($123,800 versus $51,800), according to the report.
Also, digital members contribute 61% more to their savings accounts than those who aren't online ($8,700 versus $3,400).
And while 30% of non-digital members maximized an employer match in 2023, the number goes up to 61% among digital members.
More than eight in 10 Gen X employees believe their employers should also help employees achieve retirement security, according to a previous report from Natixis Investment Managers.
Recently, Ottawa announced its intent to expand early pension eligibility for key frontline safety and security workers.
