Sun Life report shows workplace plan design can turn hesitant savers into confident investors
Confidence, not knowledge, is doing most of the heavy lifting in how Canadians save for retirement.
According to Sun Life’s new Member Mindsets, Motivations and Metrics report, plan members with higher financial confidence save 64 percent more of their income for retirement than those who lack confidence, even though higher literacy alone lifts savings by just 12 percent.
Ipsos collected the data for Sun Life from more than 1,900 members in Sun Life workplace savings plans across Canada.
Sun Life reports that about one‑third (30 percent) of surveyed members combine high confidence with strong financial literacy and build savings worth almost four times their income.
Those with low confidence and low literacy save only 2.1 times their income, a gap the report describes as nearly an 86 percent difference.
“An 86 percent difference in savings is staggering,” said Dave Jones, senior vice‑president, Group Retirement Services, Sun Life.
He called it “a wake‑up call” and said Canadians need more than education to build the confidence to take control of their financial futures.
The report also flags an “advice gap” with direct implications for plan design and member support.
Sun Life finds that the most confident, knowledgeable investors are more likely to work with financial advisors, while cautious investors – who could benefit the most from professional guidance – more often rely on friends and family for advice.
Gender differences deepen the challenge.
Sun Life notes that men are more likely to show up as high‑confidence investors, while women appear more cautious.
Women contribute 21 percent less than men to group retirement plans, even though they generally must fund longer retirements with less savings and face more health issues.
The report adds that 36 percent of women avoid financial advice because they feel they do not have enough savings, which reinforces weaker long‑term wealth outcomes.
Against this backdrop, workplace retirement savings plans now sit at the core of many Canadians’ retirement strategies.
Sun Life reports that 52 percent of surveyed members expect their workplace plan to be their main source of retirement income.
Within those plans, certain features clearly move behaviour.
According to Sun Life, 90 percent of surveyed members contribute enough to capture their full employer match, underscoring the strength of matching as a savings trigger.
The report also finds that 70 percent of members want access to financial advisors for holistic retirement planning through their workplace arrangements.
Automation emerges as another lever.
Sun Life says nearly 80 percent of surveyed members value automatic features such as auto‑enrolment and auto‑escalation, signalling strong appetite for “set‑it‑and‑forget‑it” mechanisms that reduce friction and decision fatigue while keeping contributions flowing.
Jones said workplace savings plans fill a crucial gap in Canadians’ long‑term financial security, noting that simple plan design, targeted communication and accessible guidance can measurably boost financial confidence and literacy.
