Living the dream?
Aon’s 2018 Global DC and Financial Wellbeing Employee Survey examines employees’ current financial health as well as their expectations for retirement. In Canada, the survey was sent to members of all types of employer-sponsored Capital Accumulation Plans (CAPs), including registered Defined Contribution (DC) pension plans as well as group Registered Retirement Savings Plans (RRSP), Deferred Profit Sharing Plans (DPSP) and group Tax Free Savings Accounts (TFSA).
On the whole, the financial outlook of Canadian CAP members seems positive. But when we look at where members are with respect to their retirement goals and if they are on track to have the income they need, we find their perceptions not lining up with reality. Although most members are positive about their current financial situation and feel confident about making financial decisions that affect their future, they face challenges. Almost 50% say their outstanding debts prevent them from saving for retirement. Additionally, only two in five employees have set a goal for how much they need to save before full retirement while over a quarter have no idea how much they need to maintain their standard of living in retirement. A clear theme is that employees in these plans are concerned they will not be able to save enough to generate sufficient retirement income.
The reality is that for most people, retirement will be different than in previous generations – likely starting at older ages and incorporating phased or flexible arrangements.
Our research shows that retiring in your 70s—or not at all—will become increasingly common.
How will this change the way people plan their retirement incomes? How can we persuade them to plan at all?
Across all age ranges, there is an appetite for better information and advice from employers.
Are you ready to support your employees in choosing the right options for a changing world?
Together, we can help employees reach a sustainable and secure retirement.
Aon’s 2018 Global DC and Financial Wellbeing Employee Survey was conducted during the summer of 2018. In Canada, Aon partnered with Ipsos to survey over one thousand members of employer provided Capital Accumulation Plans (CAPs).
To learn more about Aon's DC and Financial Wellbeing Employee Survey, download the full Canada Summary report above.
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
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The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.