iAtoday

In 2023, 53% of Canadians admitted they don’t know how much money they will need to retire, and only 45% actually have some sort of plan in place for their retirement, according to CPP Investments.¹

Against this backdrop, group retirement savings plan sponsors are wondering what decumulation strategies can help members optimize their financial wellbeing.

Investment and longevity risks

Profound changes have altered the Canadian retirement landscape over the past few decades, as Defined Benefit (DB) plans, whose financial risk is assumed by plan sponsors, are increasingly being replaced by accumulation plans.

These plans shift the burden to members, who must manage investment and longevity risks on their own—they need to plan for their own retirement income to ensure that it matches their life expectancy.

An opportunity for sponsors

‘’This makes it necessary to offer decumulation solutions that meet the challenges faced by plan sponsors and their members,’’ explains Caroline Fillion, Manager, Group Insurance Products.

In HRD Canada magazine, she discusses the challenges of cost predictability for plan sponsors and those of retirement planning and stable income for plan members, as well as market and longevity risks.

To find out more

Many plan sponsors are aware of the obstacles faced by their plan members and are looking for solutions that address issues such as cost, support, the aging workforce and fiduciary responsibility.

To find out more about the range of solutions we offer, and how they can benefit your clients, read the article The decumulation challenge, in which Caroline Fillion discusses the many headwinds and opportunities facing the decumulation landscape in Canada, and how we can help your clients address the retirement concerns of their employees.

Enjoy!

¹ Retirement matters to most Canadians, but the path is unclear, survey finds