{"id":23916,"date":"2025-08-04T17:54:12","date_gmt":"2025-08-04T17:54:12","guid":{"rendered":"https:\/\/insurance-canada.ca\/?p=83599"},"modified":"2025-08-04T17:54:12","modified_gmt":"2025-08-04T17:54:12","slug":"staying-the-course-canadians-continue-saving-for-retirement-amidst-market-volatility","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2025\/08\/04\/staying-the-course-canadians-continue-saving-for-retirement-amidst-market-volatility\/","title":{"rendered":"Staying the course: Canadians continue saving for retirement amidst market volatility"},"content":{"rendered":"<h4>More Canadians are adjusting, not abandoning, their retirement and investment strategy when faced with economic uncertainty<\/h4>\n<p>Toronto, ON (July 29, 2025) \u2013 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\u2019s <strong>2025&nbsp;<em>Designed for Savings<\/em> report<\/strong> paints a clear picture of how Canadians are adjusting their investment strategies instead of abandoning their retirement savings.<\/p>\n<p>The benchmark report uses data from 1.5 million Sun Life group retirement plan members to identify workplace savings trends in Canada.&nbsp;<strong>The report shows the consistency and resiliency of workplace plans and members: <\/strong><\/p>\n<ul type=\"disc\">\n<li><strong>Investment reallocation versus withdrawal.<\/strong> 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.<\/li>\n<li><strong>Average contributions increasing.<\/strong> Positive trends in member savings behaviours continue with average contributions reaching over <span class=\"xn-money\">$9,500<\/span>, a 6% increase from 2022.<\/li>\n<li><strong>Member education resonating. <\/strong>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.<\/li>\n<li><strong>Target date funds (TDFs) remain popular and effective.<\/strong> 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.<\/li>\n<\/ul>\n<p>\u201cThe \u2018buy Canadian\u2019 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\u2019s encouraging to see that they aren\u2019t reactively pulling their money out of the market,\u201d said <span class=\"xn-person\">Dave Jones<\/span>, Senior Vice-President, Group Retirement Services, Sun Life. \u201cSome Clients are shifting their assets from U.S. equities into more conservative options. They\u2019re engaged and taking their financial future seriously while navigating through turbulence.\u201d<\/p>\n<p>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.<sup class=\"supscript\">[<a href=\"https:\/\/insurance-canada.ca\/2025\/08\/04\/sun-life-retirement-savings-report\/#notes\">1<\/a>]<\/sup> By leveraging what\u2019s 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:<\/p>\n<ul type=\"disc\">\n<li><strong>Take advantage of your workplace savings plan<\/strong>. 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.<\/li>\n<li><strong>Create a personalized financial plan. <\/strong>A financial roadmap is key to achieving your specific goals. The average workplace plan account balance continues to grow, sitting at <span class=\"xn-money\">$94,220<\/span> 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 <a href=\"https:\/\/www.sunlife.ca\/workplace\/en\/group-retirement-services\/member-experience\/sun-life-one-plan\/\" target=\"_blank\" rel=\"nofollow noopener\">Sun Life One Plan<\/a>. This tool helps Clients set, track, and continuously adjust personalized goals.<\/li>\n<li><strong>Connecting with an advisor.<\/strong> 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.<\/li>\n<\/ul>\n<p>\u201cIn times of change and uncertainty, having a trusted partner who understands your unique goals and needs is paramount,\u201d said <span class=\"xn-person\">Rowena Chan<\/span>, President, Sun Life Financial Distributors (<span class=\"xn-location\">Canada<\/span>) Inc. and Senior Vice-President, Retail Advice &amp; Solutions. \u201cLife 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\u2019s future is protected for generations to come is priceless.\u201d<\/p>\n<p>Read the 2025 <a href=\"https:\/\/www.sunlife.ca\/workplace\/en\/group-retirement-services\/insights\/designed-for-savings\/\" target=\"_blank\" rel=\"nofollow noopener\">Designed for Savings Report<\/a>&nbsp;to learn more about workplace savings and income trends in <span class=\"xn-location\">Canada<\/span>.<\/p>\n<h4 class=\"smallhead\">Notes<\/h4>\n<p>1.&nbsp;Statistics Canada. Retirement age by class of worker, 2020 \u2013 2024 annual.<\/p>\n<h4 class=\"smallhead\"><b>About Sun Life<\/b><\/h4>\n<p>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 <a href=\"https:\/\/www.sunlife.com\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">www.sunlife.com<\/a>.<\/p>\n<p>Sun Life Financial Inc. trades on the Toronto <em>(TSX)<\/em>, New York <em>(NYSE)<\/em> and Philippine <em>(PSE)<\/em> stock exchanges under the ticker symbol <em>SLF<\/em>.<\/p>\n<p><em>Note: All figures in Canadian dollars<\/em><\/p>\n<p class=\"referencetext\"><em>SOURCE: Sun Life Financial Canada<\/em><\/p>\n<p> Tags: <a href=\"https:\/\/insurance-canada.ca\/tag\/retirement-planning\/\" rel=\"tag\">retirement planning &amp; savings<\/a>, <a href=\"https:\/\/insurance-canada.ca\/tag\/sun-life\/\" rel=\"tag\">Sun Life<\/a>, <a href=\"https:\/\/insurance-canada.ca\/tag\/survey\/\" rel=\"tag\">survey<\/a>, <a href=\"https:\/\/insurance-canada.ca\/tag\/trends\/\" rel=\"tag\">trends<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>More Canadians are adjusting, not abandoning, their retirement and investment strategy when faced with economic uncertainty Toronto, ON (July 29, 2025) \u2013 When it comes to saving for retirement Canadians are holding strong. 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