Sun Life Canada releases report: Confidence paired with knowledge is key to retirement savings success
Financial confidence – the ability to make decisions and take action – can have a meaningful impact on retirement savings outcomes, beyond financial knowledge alone.
Sun Life Canada's Member Mindsets, Motivations and Metrics report found that plan members who reported higher confidence were more likely to be on a stronger savings path. The findings point to an opportunity for workplace savings plans and the broader industry to help Canadians not only learn about financial planning but also feel equipped to act on it.
The data collected by Ipsos, on behalf of Sun Life, offers valuable insights into the attitudes and behaviours of over 1,900 surveyed plan members who participated in a Sun Life workplace savings plan in Canada.
The power of confidence
Highly confident savers put away 64 percent more of their income than those with low confidence, while individuals with higher literacy saved only 12 percent more than those with lower literacy.
Confidence and financial literacy: the dynamic duo
Surveyed plan members that have both high confidence and strong financial literacy saved almost four times their income, while those with low confidence and literacy saved only 2.1 times.
Pronounced gender differences
Women contribute 21 percent less than men to group retirement plans, despite generally needing to fund longer retirements with less savings and facing more health challenges.
Dave Jones
"Workplace savings plans are filling a crucial gap for Canadians' long-term financial security. Simplified plan design, targeted communication strategies and accessible financial guidance make a measurable difference. Employers have an opportunity to boost financial confidence and literacy by playing a pivotal role in helping Canadians achieve lifetime financial security and live healthier lives."
