Despite ongoing market fluctuations, Canadians are holding firm in their commitment to retirement savings, according to Sun Life's newly released 2025 “Designed for Savings” report.
Drawing data from 1.5 million group retirement plan members, the benchmark study reveals more Canadians are adjusting, not abandoning, their retirement and investment strategy to workplace savings, even as economic uncertainty persists.
It also underscores the importance of consistent planning and education in shaping resilient retirement strategies, the international financial services firm said in a statement.
In the first quarter of 2025, members shifted funds out of US equity at the highest rate since early COVID-19, indicating growing caution, the report noted.
However, withdrawal rates remained steady, suggesting that while investors are adjusting strategies, they are not abandoning long-term retirement plans.
Notably, the report highlights a 6 per cent rise in average contributions, now exceeding $9,500, as members continue building toward financial security.
Member education also appears to be making a difference—those who engaged with an advisor were 70% more likely to take proactive financial steps.
Target date funds (TDFs) are gaining traction as well, now accounting for 42% of plan balances, up from 29% in 2018. Members investing exclusively in TDFs have outperformed their peers in eight of the last ten years, Sun Life added.
The report also said members of workplace savings plans are retiring an average of two years earlier than the general population—thanks in part to better utilization of employer-matched contributions and digital planning tools.
The average plan balance now sits at $94,220, a 16% increase from 2022, Sun Life said. It encouraged Canadians to take advantage of employer contributions, create personalized financial plans, and connect with advisors for tailored guidance.
Dave Jones, Sun Life’s Senior Vice-President of Group Retirement Services, noted the influence of recent domestic investment sentiment.
“The ‘buy Canadian’ movement may be shaping how people allocate assets. What’s encouraging is that clients are staying invested, shifting rather than retreating,” he said. “They’re navigating market turbulence with clear intent and growing engagement.”
“In uncertain times, trusted advice becomes even more important,” said Rowena Chan, President of Sun Life Financial Distributors (Canada) Inc. “We’re committed to helping Canadians protect their financial future—for themselves and generations to come.”
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