Retirement plan members who engage with their plan digitally have an average retirement account balance 230 per cent higher than those who weren’t engaged ($123,800 versus $51,800), according to a new report by Sun Life Financial Inc.
The report, which analyzed data from 1.45 million Sun Life group retirement plan members, found employees who were were digitally engaged are also more likely to make lump sum contributions and more likely to withdraw less money from their savings. The average withdrawal among digitally engaged plan members was $12,700 in 2023, compared to $27,700 among plan members who aren’t digitally engaged.
Digitally engaged plan members contributed 61 per cent more to their savings accounts ($8,700 versus $3,400) and are two-times more likely to maximize an employer match. The report also found 36 per cent of plan members logged in once during 2023 but fewer than once per quarter, while 32 per cent weren’t engaged digitally and preferred interacting through other channels and 24 per cent were highly engaged with the digital tools.
“It’s important people not only prepare for retirement but feel confident in the decisions they’ve made,” said Eric Monteiro, senior vice-president of group retirement services at Sun Life, in a press release. “It’s clear that those who regularly log-in online see the long-term benefits of embracing the convenience of digital tools. These numbers paint a vivid picture about how technology can empower people to take control of their financial future.”
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