Your employee’s personal financial anxiety is not only harmful to them but will likely hurt your bottom line. In a global survey, Willis Towers Watson found that employees with financial worries report worse health, higher stress, more absences and lower engagement levels than did employees without financial concerns.
There are plenty of surveys confirming that Canadians are stressed about retirement. In September 2018, the Canadian Payroll Association reported that 46% of Canadians said fi nancial stress is aff ecting their workplace performance, and 72% said they have only saved a quarter or less of what they feel they will need to retire.
The Canadian Public Pension Leadership Council (CPPLC) found that over half of all Canadians said that retirement-planning stress has a medium-to-high impact on their work. A 2017 CPPLC survey found that 97% of Canadians, across all ages and income levels, want predictable, lifetime retirement income, and 84% are willing to contribute 5% or more to achieve it. In addition, employees who have to manage their retirement investments are more likely to have stress that affects their work. For instance, 69% of respondents with a group RRSP said retirement-planning stress interfered with their work.
An Innovation that Helps
Innovations in the pension sector are helping employers provide secure lifetime retirement income to their employees. The expanded accessibility of Modern Defined Benefit (MDB) pension plans means that more workplaces can meet the needs of their employees, HR departments and CFos with a sustainable pension plan at a fixed cost and without the accounting risk or administrative costs of off ering a pension plan.