Despite the best efforts of capital accumulation plan (CAP) sponsors to provide education and tools, most members will never become financial experts. But what does that mean for plan sponsors and for the retirement readiness of employees?
Every year, Benefits Canada, with the support of sponsors, conducts a CAP Member Survey to gauge the views and attitudes of plan members toward their capital accumulation plans (CAPs).
The vast majority of capital accumulation plan members don’t have a financial plan, yet many still say they are prepared for retirement.
Participation rates for eligible employees in employer-sponsored savings plans are healthy, but there is room for improvement.
Men are from Mars and women are from Venus, right? Well, it turns out this claim also holds true for retirement planning.
What’s preventing members from saving more in their CAPs?
What can CAP sponsors and providers do to keep members on track to retire as planned?
Are members actually using the information, tools and resources available to them?
What motivates CAP members’ behaviour, and what might help them make better decisions?
If you’re a capital accumulation plan (CAP) sponsor, you probably expend a lot of time and energy on member communication and education. That’s also true for the CAP industry at large, as we worry about future generations of workers who will have to delay retirement or who won’t be able to retire with the income they need.