The journey to retirement may seem like a slow-moving river, but before you know it, you’re navigating those final rapids. To ensure a smooth journey through these challenging waters, it’s essential to prepare for retirement well in advance, while you still have time to enjoy the ride. Retirement, after all, is a big milestone that should ideally be enjoyed with financial security and peace of mind. The reality is, however, that a concerning number of Canadians aren’t prepared.
A new H&R Block survey suggests half of Canadians feel they won’t be able to retire because they’re unable to save enough money at the end of every month. In fact, one survey finds nearly half of Canadian pre-retirees have less than $5,000 in savings.
Saving for retirement is becoming increasingly challenging for a number of reasons. The cost of living in Canada has steadily been on the rise, from housing to everyday expenses. Many young Canadians are living beyond their means, and those close to retirement are falling behind. Finding the extra cash to stash away for retirement these days can feel like trying to catch a shooting star.
The pandemic also had a profound impact on many Canadians’ finances. Job losses, reduced incomes, and unexpected expenses created setbacks in retirement savings plans. Many individuals are also grappling with student loans, credit card debt, and mortgages.
Also, with Canadians living longer, the retirement nest egg needs to stretch further, and this means saving more for an extended period. Given these challenges, it’s no wonder why Canadians are worried about their retirement readiness. This is where employers can step in, to serve an important role in helping employees prepare for their golden years.
Here are three ways employers can not only encourage retirement savings, but also demonstrate that they care about their employees’ long-term financial success:
The road to retirement readiness in Canada may be paved with challenges, but it’s not impossible to navigate. Contact us so we can work together to strengthen your retirement offerings, helping your employees take control, build a brighter financial future, and enjoy the scenery along the way.