When it comes to retirement saving, Canadian workers prefer private investments, TFSA and RRSP over CPP.
A recent opinion poll by Ipsos-Reid for the Canadian Federation of Independent Businesses (CFIB) published some very interesting findings of Canadian’s retirement planning, ability to save for retirement, and preferred retirement planning and employee benefits.
The CFIB study discovered that before increasing CPP, more Canadians want to save extra money for retirement through TFSA and RRSP (Tax Free Savings Accounts and Registered Retirement Saving Plan), or through other private investments.
Here are some other interesting findings for you, as an employer, to consider.
1. 60% of Canadians can’t afford to save more than they already do.
This confirms that most likely, your employees are just barely supporting their current lifestyle due to living expenses and saving for retirement. Without government or workplace assistance, employees will struggle to save what they would like to save (or actually need to save) in order to maintain their lifestyle after they exit the workforce.
2. Less than 1 in 5 support putting more money into CCP.
Only 19% of working Canadians surveyed say they would put more savings into CCP. Furthermore, the results find that over one-third of Canadians would struggle to afford any increase in mandatory CCP, and would be forced to reduce spending on essential expenses such as rent and food.
3. Canadians want government to reduce taxes and/or create new saving incentives.
Rather than mandatory CCP increases, employees feel that the best way government can help them save for retirement is for government to reduce spending and taxes, and create new additional saving incentives.
Need Help with Employee Benefit Planning?
Do these survey results match the feelings of your employees?
Is your Employee Benefits plan reflective of how your employees want to save for the future? Are your employees more interested in TFSA and RRSP saving than CCP?
Call Benefit Strategies at 1-780-437-5070 to speak with one of our employee benefit advisors about employee benefit planning and how you can help your employees save for their future.
Read more about the study here.