Encouraging more Canadians to save more for retirement is a significant focus of government policymakers. Concern is being driven by a decline in traditional employer-sponsored plans, a perceived shortfall in individual savings targeted for retirement and current personal debt levels.
Typically, analyses of Canadians’ retirement readiness excludes non-pension assets, such as the family home or non-pension savings, and may be understating Canadians’ retirement-readiness. Nonetheless, new approaches to retirement savings are needed to ensure that tomorrow’s pensioners will be financially ready to handle projected longer lifespans.
The industry is committed to working with government to encourage employers to offer workplace pension plans by expanding the range of choices available to them. For example, it has identified measures that would enhance the pension-like properties of Group RRSPs.
Studies demonstrate that long-term use of financial advice results in better savings habits, higher asset accumulations and greater confidence when it comes to retirement readiness. IFIC believes that expanding individual Canadians’ access to advice should be a public policy priority and is advocating strongly for advice- options to be included within Pooled Registered Pension Plan (PRPP) product offerings.