With the battle for the best people a global challenge, long-term financial planning has a role to play
Your business clients should be encouraged to offer attractive retirement solutions to help them in the battle for the best talent according to a new report.
The white paper from CAAT Pension Plan makes the case that helping to boost retirement preparedness and literacy can help employers attract and retain staff, with the current economic conditions challenging those who are closest to retirement.
It comes amid concerns raised this week by Deloitte that millions of Canadians are facing a retirement crisis.
The CAAT research shows that running out of money in retirement is a major stressor for the next generation to retire en masse, Gen X, with 53% saying they are highly stressed about outliving their retirement savings, followed by younger workers of Millennials and Generation Z between ages 25 to 34 (49%).
The big focus for all generations is for retirement income that is guaranteed to last a lifetime (72%) is inflation-adjusted (71%), and monthly and predictable (71%). These features are more in demand among those closest to retirement. The majority of Canadians under 45 (55%) want an employer contribution match.
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With one advisor telling Wealth Professional that Canada is under-equipped to meet the demand for retirement income solutions, the CAAT report highlights how employers can play a vital role in addressing workers’ concerns.
"After years of challenging economic conditions, many have been set back in their savings and are more stressed about their financial and retirement futures," said Derek Dobson, CEO and Plan Manager of CAAT Pension Plan. "The paper highlights the pivotal role employers play in improving retirement income security for Canadians where savings vehicles can have the most positive impact, which is in the workplace."
The white paper also reveals that while the qualities of defined benefit pensions are most desirable, more than half of Canadians ages 18 to 24 (55%) would switch employers for any pension plan at all.
