Sun Life survey discovers that many people are not taking full advantage of retirement options as inflation forces tough choices
When faced with rising costs outpacing income growth some tough choices are inevitable.
And for Canadians in their peak working years, retirement remains some decades away and is therefore likely to be in line for cuts when budgets are under pressure.
A new report from Sun Life shows that those in their thirties and forties are most likely to be making the largest decreases in their contributions to workplace retirement plans.
An analysis of 1.4 million Sun Life group retirement plan members reveals that among 30–49-year-olds there was a 7% decrease in average contributions while those in their 50s cut back by an average 5%.
The report also shows that a quarter of people are not taking full advantage of their employer matching program.
"Contributing to one's retirement savings is tough in today's environment, but every year can make a big difference in the long run," said Eric Monteiro, Senior Vice-President, Group Retirement Services, Sun Life. "Workplace plans have tools and resources to help Canadians take control of their financial future.”
Gender gap
The 2023 Designed for Savings report also reveals that, despite almost identical participation rates, men contributed $9,500 to their plan in 2022 compared to $7,700 for women.
Balances also reflect the gender gap.
Among men, balances are up from $55,260 to $92,030 between 2010 and 20221. For women this rose from $37,090 to $69,410 during the same period.
The report highlights that women’s financial needs are still underserved by financial advisors and wealth firms.
