Many Canadians are concerned about having enough to live on when they retire, and more than half are prepared to accept reduced wages in exchange for more secure benefits.
A survey conducted by Willis Towers Watson asked employees about whether they will have enough money in retirement, and 47% of Canadian respondents said they are not sure they will have sufficient resources 25 years after they stop working. What's more, 25% lacked confidence that they would have enough to see them through just 15 years of retirement. Overall, 59% of Canadians say their work plan is their primary way of saving for retirement.
“A strong desire for more security”
To deal with this insecurity, most Canadians employees would willing to pay more in order to have guaranteed retirement benefits: 56% of Millennials say they would pay extra to have a more generous package, and Generation X and Baby Boomers were even more willing to open their wallets, at 65% and 71% respectively.
“While pay and bonus is a top focus for all generations, especially millennials who are struggling with heavy debt loads and stagnant wages, employees across the spectrum are feeling vulnerable about their long-term security,” says Todd Nelson, senior consultant at Willis Towers Watson. “Employees young and old have a strong desire for more security and are willing to give up pay to get more guarantees or more generous benefits.”