Canadians Struggle with Retirement Planning Amid Rising Living Costs
Retirement planning is a crucial aspect of financial stability, yet many Canadians are finding it increasingly challenging to save for their golden years. A recent study conducted by the Canadian Association of Retired Persons (CARP) for Sun Life revealed some alarming statistics – one-third of Canadians struggle with retirement planning, and a staggering 75 percent believe that their cost of living negatively impacts their retirement savings.
The study also found that more than half of the respondents fear they do not have enough money to retire comfortably. This lack of confidence is further exacerbated by the difficulty in finding quality information and resources to help with retirement planning. It is evident that effective retirement planning plays a significant role in how prepared individuals feel when they eventually leave the workforce.
Eric Monteiro, senior vice-president of Group Retirement Services at Sun Life, emphasizes the importance of planning for retirement. He states, “There are many factors to consider when saving for retirement. Planning can greatly impact someone’s ability to retire. It is essential to envision what you want your retirement to look like and create a roadmap to achieve those goals.”
Interestingly, the study also found that digitally engaged employees tend to fare better in their retirement savings. These individuals have average balances that are 230 percent higher than those who are not digitally engaged. They also contribute 61 percent more to their savings accounts and are twice as likely to maximize an employer match. Digital engagement leads to more frequent lump-sum contributions and fewer withdrawals from savings, indicating a strong link between digital tools and improved retirement readiness.
Sun Life’s report, ‘Designed for Savings: Digital Engagement,’ highlights these findings using data from 1.45 million Sun Life Group Retirement plan members. Monteiro underscores the benefits of digital tools, stating, “It’s important that people not only prepare for retirement but feel confident in the decisions they’ve made. Those who regularly engage online see the long-term benefits of embracing digital tools, empowering them to take control of their financial future.”
To assist individuals in their retirement planning journey, Sun Life recently introduced the retirement planner powered by Sun Life One Plan. This tool offers plan members a quick financial assessment in under five minutes, providing personalized insights and projections. Members can also seek advice from licensed consultants to deepen their planning experience and create a comprehensive financial roadmap for their future.
In conclusion, retirement planning is a critical aspect of financial well-being, especially as living costs continue to rise. By utilizing digital tools, seeking expert advice, and creating a solid financial roadmap, Canadians can better prepare for a comfortable and secure retirement. It is never too early to start planning for the future, and with the right resources and guidance, individuals can take control of their financial destiny.
