Digital tools boost Canadians' retirement savings, study says
“There are many factors to think about for Canadians when it comes to saving for retirement,” says Eric Monteiro, senior vice-president, Group Retirement Services, Sun Life.
“Planning can significantly affect someone’s ability to retire. Considering what you want your retirement to look like and building a roadmap to get there is essential.”
Employees who engage digitally with their retirement plans save more money, feel more confident, and achieve better retirement outcomes. The benefits of digital engagement include:
- Digitally engaged members have an average balance 230 percent higher than those who are not engaged ($123,800 versus $51,800).
- Digital members contribute 61 percent more to their savings accounts than non-digital members ($8,700 versus $3,400).
- Digital members are twice as likely to maximize an employer match, with 61 percent doing so compared to 30 percent of non-digital members.
Engaged members are also more likely to make lump sum contributions and withdraw less from their savings.
Sun Life’s ‘Designed for Savings: Digital Engagement’ report, based on data from 1.45 million Group Retirement plan members, shows a strong link between digital engagement and better retirement readiness.