Canadians unable to afford retirement are working longer, employers can help them better prepare
"The survey results suggest there are multiple sources contributing to
this financial anxiety. Among them is the lack of confidence in
financial support from public benefits. Less than one-third of the
survey respondents believe that Old Age Security and the
Canadian workers also continue to struggle with the corporate cut-backs
of the past five years. According to the survey, 76% of Canadian
workers have endured cuts in salary increases and benefits, or have
lived through significant organizational change. "Employers and
employees alike have experienced a significant period of change and we
are now living in a new reality," said Burnett. "While corporate
profitability has improved and rising stock prices have boosted
retirement accounts, slow economic growth and stagnant wages continue
to weigh on public confidence and contribute to a continued fear about
a retirement crisis in
The survey results show that Canadians are tackling their concerns about
financial security head-on — by deferring expenditures, paying down
debt and living more modest lifestyles. They are also saving more for
retirement. In fact, close to two-thirds of survey respondents 40 or
older rank saving for retirement as their number one priority.
While saving for retirement may be the top financial priority for Canadians, the survey results demonstrate that many are not saving enough. According to the survey, three-quarters of Canadians are saving below their ideal target and only half of the survey respondents believe they will be able to improve their financial prospects. For many Canadians, this means a delayed retirement. According to
In light of growing retirement pressures for both employers and employees, there are a number of actions that Canadian organizations can take in order to assess the effectiveness of their retirement programs and help employees plan for retirement. According to Burnett, "a key need is to better integrate employee retirement communication and education with organizational workforce planning. The technology and tools exist to close gaps in employee understanding about how much retirement will cost, and to provide employers with the analytics to determine if their retirement programs will support a structure that aligns with their workforce needs."
Ultimately, the Towers Watson survey suggests that economic and social pressures will continue to drive increased discussion about the role that employers should play in ensuring retirement income sufficiency for Canadian workers.
About the Survey
About Towers Watson
Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. The company offers consulting, technology and solutions in the areas of benefits, talent management, rewards, and risk and capital management. Towers Watson has more than 14,000 associates around the world and is located on the web at www.towerswatson.com.
SOURCE Towers Watson