{"id":19473,"date":"2020-09-04T08:39:13","date_gmt":"2020-09-04T12:39:13","guid":{"rendered":"https:\/\/www.benefitscanada.com\/news\/plan-sponsor-week-planning-for-retirement-should-be-a-holistic-process-149496"},"modified":"2020-09-04T08:39:13","modified_gmt":"2020-09-04T12:39:13","slug":"plan-sponsor-week-retirement-planning-a-holistic-process","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2020\/09\/04\/plan-sponsor-week-retirement-planning-a-holistic-process\/","title":{"rendered":"Plan Sponsor Week: Retirement planning a holistic process"},"content":{"rendered":"
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\"123rf.com\/wirojsid\" <\/div>\n<\/p><\/div>\n

Kelsey Rolfe<\/span> | September 4, 2020 <\/p>\n

Retirement and savings programs should motivate plan members to think about how they want to spend their time in retirement as well as their money.<\/p>\n

\u201cIf we focus in just on the financial part of the equation and then [plan members] get to that point where [they\u2019re] retiring, not only might they not have enough money to do the things they decide they want to do, but also they haven\u2019t really figured it out,\u201d said Laura Pratt, national practice leader of organizational health at Canada Life Assurance Co., during a session at Benefits Canada<\/em> and the Canadian Investment Review<\/em>\u2019s 2020 Plan Sponsor Week in mid-August.<\/p>\n

\u201cI think the worst thing is going into that stage of your life without a bit of a plan or an expectation of how you want that to look.\u201d<\/p>\n

Read: Financial wellness programs should stress capability, not just literacy: webinar<\/a><\/strong><\/p>\n

Pratt suggested plan sponsors connect members with free resources that encourage them to plan how they\u2019ll spend retirement, including who they hope to spend it with, whether they want to give back to their communities, what activities would give them a sense of purpose and enjoyment and routines they hope to develop or continue.<\/p>\n

\u201cIf we\u2019re lucky, our retirement years may represent up to a third of our lives and we want to spend time on the things that we\u2019re passionate about, that we enjoy and that bring purpose to our lives. So it\u2019s important to do some planning and to consider what we want out of our retirement years.\u201d<\/p>\n

Also speaking during the session, Avnee Patel, national accounts executive in Canada\u2019s Toronto consulting and group customer business, said financial well-being programs will help arm employees with the financial literacy to plan for their retirement. \u201c[Financial well-being is] a lot like mental and physical well-being \u2014 it\u2019s about creating good habits to support your goals.\u201d<\/p>\n

Read: 2020 CAP Member Survey webinar: Challenges ahead<\/a> <\/strong><\/p>\n

The demographic composition of the workforce is changing, she noted, with millennials making up a larger portion. While this cohort is more educated and skilled than their parents, they also report low levels of financial literacy, according to a survey by BMO Wealth Management. It found just 24 per cent of millennials reported having basic financial literacy \u2014 meaning they understand their assets, expenses and income \u2014 and a mere eight per cent had a high level of financial literacy, understanding taxes, banking options, mortgages and investing.<\/p>\n

\u201cFor employers offering a retirement and savings program, the process is fairly straightforward: offer the plan, hopefully include a contribution or a matching component from the employer, promote enrolment into the plan and try to promote the tools and resources available for the member,\u201d said Patel. \u201cBut is this really contributing to an employee\u2019s financial well-being or addressing their priorities?\u201d<\/p>\n

Pointing to the results of the 2020 Sanofi Canada health-care survey, she noted 39 per cent of respondents cited personal finances as the biggest source of stress. It also found financial planning services made the list of the top products and services plan members would use if added to their benefits plan. Financial planning also made the list of services that plan sponsors were interested in covering.<\/p>\n

Read: Pandemic boosting relevance of financial wellness offerings: survey<\/a><\/strong><\/p>\n

Employers can use retirement and savings programs to encourage good financial habits, such as budgeting and expense tracking, among employees. \u201cBudgeting is an organized way to understand how money is spent and promoting expense tracking can really help someone understand how much they will need in retirement,\u201d she said.<\/p>\n

They can also encourage the use of a tax-free savings accounts to save up a small cash cushion for unexpected expenses, giving employees peace of mind and helping them to set financial goals to work toward.<\/p>\n

\u201cA culture of good financial habits goes a long way,\u201d said Patel. \u201cA lot of what\u2019s going to determine what will happen [in retirement] will be the savings and spending habits we pick up during our working years.\u201d<\/p>\n

All of the 2020 Plan Sponsor Week sessions are available on-demand at benefitscanada.com\/webinars<\/a>.<\/strong><\/p>\n

Read the full article at BenefitsCanada.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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