Only 47 per cent of working age Canadians (those 25 years of age and older) have a workplace retirement savings plan, according to the most recent Manulife Investor Sentiment Index.
The survey also finds most Canadians are risk averse in their approach to saving and investing and are likely missing some opportunities to safely increase their savings, such as maximizing an employer-sponsored pension plan.
“Access to workplace savings plans and financial advice can help Canadians plan for a better retirement,” said Marianne Harrison, senior executive vice president and general manager, Canadian division, Manulife.
“The action taken by the federal government in 2012 to pass the Pooled Registered Pension Plans (PRPP) Act, creates a national awareness that Canadians need to save for retirement. We continue to work closely with the federal and provincial governments to help make this savings solution available across the country.”
When it comes to planning for retirement, survey findings also show that working Canadians are less likely to consult a financial advisor to help manage their workplace retirement plan. According to the survey, only six per cent of working Canadians receive advice from an advisor to help them manage their workplace retirement plan.
Other survey findings include:
- 38 per cent those surveyed are interested in having their employer contract a third-party company to support them with planning for retirement.
- 66 per cent are likely to keep the investments within their employer plan and begin to draw an income when they retire rather than transfer the assets to another financial institution.
The Manulife Investor Sentiment Index is a semi-annual measure of investors’ views on a range of asset classes and savings and investment vehicles, as well as their confidence in these areas. The index is based on an online survey of 1,000 Canadians aged 25+ that was conducted between May 14-23, by Research House, an Environics Company.