Survey finds 47% of working Canadians fear they’ll outlive their own retirement savings.

So almost half of Canadians, according to a just-released survey, are concerned about trying to retire. For some, all that glitters may not be those golden years.

The industry survey results, released Nov. 19, indicate that 47% of Canadians in the workforce believe they are running a serious risk of outliving their retirement savings, according to Sun Life Financial Inc.

Other findings from the survey look equally bleak:

  • 75% of working Canadians don’t have a financial plan
  • 44% of working Canadians expect they’ll still be working full-time at age 66
  • 23% of Canadian retirees say their lifestyle is “frugal”
  • Of those retirees, 65% of those who’ve worked past age 66 say they’ve done so out of necessity

The survey did note, however, that “more and more Canadians” can seek a more financially secure retirement by accessing workplace savings vehicles. And if your company wants to help build a financially secure future for its employees, Link Investment Management’s workplace financial wellness programs can help restore the luster to those golden years.

“One survey after another has consistently told us that Canadians are worried about what they’ve set aside for retirement,” says Brian McClennon, President and CEO of Link Investment Management.

“Our LINK Multi Employer Pension Plan is open to any Canadian business. While it has substantial benefits for employers, it can ultimately help Canadians live better in retirement, and reduce those savings worries.”

Many Direct Contribution (DC) pension plans suffer from poor employee engagement due to a lack of understanding or confidence in investing and an overwhelming number of choices—leading to low participation or poor decisions on asset allocation.

The ALPP, a multi-employer DC pension plan, eliminates the confusion with a simplified investment model based on low-cost, index-tracking Exchange Traded Funds (ETFs) and Target Date Funds.

The ALPP also features:
  • Fast and easy onboarding
  • An investment portfolio tailored to the employee’s investment goals, risk tolerance and timeline, thanks to Link’s proprietary robo-advisor algorithm
  • A digital platform for secure, easy access to plan information from any device

“The fee issue is arguably the most important aspect of a pension plan for many, many people, and that’s where our ALPP really shines,” says Mr. McClennon.

“Fees have a profound effect on the final value of a portfolio. The ALPP has a lower overall fee structure, and the money saved can result in better retirement outcomes for plan members,” he adds.
They say silence is golden, and that’s especially true when it comes to soothing those retirement savings worries.

On Oct 31st 2019, Link’s CEO Brian McClennon hosted a webinar as part of the CPBI’s national webinar series to explain the benefits of Multi-Employer Pension plans titled New Multi-Employer Plan Structures and Technology – Improving the Attractiveness of DC Plans for Employers and Employees. If you are a CPBI member, you can register for the webinar to receive a recording of the presentation.

REGISTER NOW for the recording

Read more: Challenging the status quo: Comparing MEPPs and group RRSPs.

Read more: Multiple employers, multiple benefits: Why MEPPs are better equipped to ease pension plan concerns.

Read more: Simplifying, optimizing and standardizing: How technology is empowering DC Multi-Employer Pension Plans.