Staying the course: Canadians continue saving for retirement amidst market volatility

More Canadians are adjusting, not abandoning, their retirement and investment strategy when faced with economic uncertainty

Toronto, ON (July 29, 2025) – When it comes to saving for retirement Canadians are holding strong. New data shows people are taking a measured response when faced with market volatility. Sun Life’s 2025 Designed for Savings report paints a clear picture of how Canadians are adjusting their investment strategies instead of abandoning their retirement savings.

The benchmark report uses data from 1.5 million Sun Life group retirement plan members to identify workplace savings trends in Canada. The report shows the consistency and resiliency of workplace plans and members:

• Investment reallocation versus withdrawal. In Q1 2025, members moved their money out of U.S. equity funds at the highest rate witnessed since the beginning of the COVID-19 pandemic. While more people are reducing their risk exposure, they are not withdrawing their money from their plans. Withdrawal rates remain stable when compared to past years.
• Average contributions increasing. Positive trends in member savings behaviours continue with average contributions reaching over $9,500, a 6% increase from 2022.
• Member education resonating. 70% of plan members who engaged with an advisor were more likely to take action towards their financial future compared to those who did not.
• Target date funds (TDFs) remain popular and effective. TDFs now hold 42% of plan member balances, up from 29% in 2018. Members investing solely in TDFs have outperformed those who invest in non-target date funds in 8 of the last 10 years.

“The ‘buy Canadian’ sentiment that gained popularity earlier this year may also be having an impact on how people are investing their money. While some are adjusting their finances, it’s encouraging to see that they aren’t reactively pulling their money out of the market,” said Dave Jones, Senior Vice-President, Group Retirement Services, Sun Life. “Some Clients are shifting their assets from U.S. equities into more conservative options. They’re engaged and taking their financial future seriously while navigating through turbulence.”

While more Canadians are adjusting their investment patterns and staying the course, workplace savings plan members are also retiring, on average, two years earlier than the average Canadian.^[1] By leveraging what’s available through workplace savings plans, Canadians can continue to build wealth and lifetime financial security. While saving for retirement can look different for everyone, there are a few simple ways Canadians can work to secure their financial future:

• Take advantage of your workplace savings plan. Ensure you are enrolled and consider maximizing your contributions. Many employers match dollar-for-dollar, yet plan members are still leaving hundreds of millions of dollars on the table yearly by not taking full advantage of their employer match.
• Create a personalized financial plan. A financial roadmap is key to achieving your specific goals. The average workplace plan account balance continues to grow, sitting at $94,220 up 16% from 2022. Having a financial plan can help you determine what balance you need for your specific goals. There are many tools available to help, such as Sun Life One Plan. This tool helps Clients set, track, and continuously adjust personalized goals.
• Connecting with an advisor. Sun Life advisors can provide you with holistic advice, centered on your needs and a tailored financial roadmap to ensure you have the right mix of investment, insurance, and health solutions to achieve your goals and build wealth.

“In times of change and uncertainty, having a trusted partner who understands your unique goals and needs is paramount,” said Rowena Chan, President, Sun Life Financial Distributors (Canada) Inc. and Senior Vice-President, Retail Advice & Solutions. “Life is full of big moments, and Sun Life takes a holistic approach in our commitment to helping Clients achieve lifetime financial security. The peace of mind that a Client’s future is protected for generations to come is priceless.”

Read the 2025 Designed for Savings Report to learn more about workplace savings and income trends in Canada.

Notes

1. Statistics Canada. Retirement age by class of worker, 2020 – 2024 annual.

About Sun Life

Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2025, Sun Life had total assets under management of $1.55 trillion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Note: All figures in Canadian dollars

SOURCE: Sun Life Financial Canada

Tags: retirement planning & savings, Sun Life, survey, trends