About 64 per cent of employees surveyed say they regret not starting their retirement savings before the age of 25.
The road to retirement may seem long, but as the saying goes: The best time to start saving for retirement was yesterday. The second best time is today. While retirement might seem far off for younger workers, delaying savings can lead to significant regret later in life. According to a recent survey, even among employees who started saving earlier, many expressed that they wished they had begun sooner. This kind of regret is often related to the fear of not having enough saved to live comfortably once they retire. The math is simple: the earlier you start, the more your money has time to grow.
The reality is that many employees, regardless of their age, are struggling to save for retirement. Economic concerns, rising inflation and increasing living costs are all contributing to financial stress and leaving workers feeling like they’re barely keeping up. Employers can step in to provide support by offering retirement savings benefits and financial planning resources. Taking this step will not only help employees avoid regret but also build a culture of financial wellness that supports peace of mind and long-term security in the workplace.
The Regret of Not Starting Early
About 64 per cent of employees surveyed say they regret not starting their retirement savings before the age of 25. While younger generations like Gen Z and Millennials are saving earlier than their predecessors, they still wish they had started sooner.
For these younger employees, getting into the habit of saving now, even if it’s a small amount, can make a big difference down the road. But the reality is that many employees don’t know where to start, or they may be overwhelmed by financial pressures in the present. Without guidance, retirement savings often take a back seat to immediate concerns like student loans, mortgages or day-to-day expenses.
Barriers to Saving
According to the survey, several factors play a role in why more employees aren’t saving for retirement and why saving for retirement is tougher today than ever before. Economic concerns, inflation and rising health-care costs are major roadblocks, especially for younger generations who are dealing with student debt and an uncertain job market. These financial pressures can make workers feel like saving for retirement is a luxury they can’t afford.
For many Canadians, the prospect of contributing to a pension plan or RRSP may seem out of reach. Nearly half of Canadians say they’re living paycheque to paycheque, according to a 2023 poll by Leger. The 2023 Canadian Retirement Survey also revealed that nearly half of employed Canadians hadn’t set aside any money for retirement in the previous year.
How Employers Can Help
Employers can help their team members avoid retirement regrets by providing them with the tools, resources and incentives to save for the future.
Here are a few ways employers can make an impact:
Avoid Retirement Regrets
Help your employees avoid the regret of not starting early and help them get on track for a financially secure future by providing them with the right resources and retirement benefits.
Contact us today so we can help you build a benefits plan that meets the needs of your team.
Suggested Reading
How Employer Matching Can Improve Retirement Readiness
Benefits to Ease Employee Financial Stress in the Face of Inflation
Why Saving for Retirement is Tougher Today Than Ever Before
3 Ways to Make Retirement Benefits Work for Your Team
Additional Resources
New Voya Financial survey finds all generations wish they started saving earlier for retirement
2023 Canadian Retirement Survey: Healthcare of Ontario Pension Plan