Engaged members save more, retire earlier, and make smarter choices, report reveals

Despite a turbulent economic landscape early in 2025, Canadian capital accumulation plan (CAP) members have largely stayed the course.
And the 2025 edition of Designed for Savings from Sun Life offers a snapshot of why financial advisors remain crucial to the successful navigation of CAP members amid volatility and market uncertainty.
While there was a notable shift away from US equities in the first quarter - at the highest rate witnessed since the beginning of the COVID-19 pandemic – and into more conservative investments like money market and guaranteed funds, this wasn’t due to panic-selling, but rebalancing. Withdrawals remained stable, underscoring long-term confidence in retirement planning.
The report also highlights the valuable place that technology has in the modern client relationship story with those CAP members who interact with digital tools have plan balances that are 177% higher than those who don’t.
But when members speak with an advisor, the likelihood of taking a positive financial action jumps by 70%, proving the role that advisors have extends beyond product selection into education, confidence-building, and behavioral coaching.
On the investment side, the report shows that target date funds continue to dominate, accounting for 42% of total assets and more than half of all member contributions, due to their value in managing risk, avoiding emotional decisions, and staying invested through volatility. For most plan sponsors, TDFs are now the default.
Contributions are also trending higher, driven by wage growth and plan design. Median group plan contributions reached $7,070, far outpacing the $4,000 median for individual RRSPs. Dollar-for-dollar employer matching remains common, making group plans a significant value-add.
However, gender disparities in contributions persist, as do underutilized opportunities in ESG and alternative investments.
"The 'buy Canadian' sentiment that gained popularity earlier this year may also be having an impact on how people are investing their money. While some are adjusting their finances, it's encouraging to see that they aren't reactively pulling their money out of the market," said Dave Jones, Senior Vice-President, Group Retirement Services, Sun Life. "Some Clients are shifting their assets from US equities into more conservative options. They're engaged and taking their financial future seriously while navigating through turbulence."