National Workplace Savings Survey shows 4 in 5 without a workplace savings plan worry about retirement lifestyle
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TORONTO, Dec. 13, 2012 /CNW/ - In a survey of Canadians from across the country, Manulife Financial found that respondents were twice as likely to support a Pooled Registered Pension Plan (PRPP) (64 per cent), rather than increase their CPP or QPP contributions (34 per cent) as a means to save more for retirement.
"Canadians strongly support the introduction of PRPPs and are looking to their provincial governments and employers to make it happen," said Sue Reibel, Senior Vice President and General Manager, Group Retirement Solutions, at Manulife Financial.Across the country, 74 per cent of respondents said it's 'important' or 'very important' for their province to introduce legislation to make PRPPs available. That figure climbs as high as 85 per cent in Quebec and 84 per cent in Newfoundland. The National Workplace Savings Survey asked more than 7,700 employed Canadians about their attitudes and convictions towards retirement planning and savings and their attitudes towards enrolling in a PRPP. PRPPs are workplace savings plans for employees of small to medium-sized businesses or the self-employed with contributions conveniently deducted from each pay. Contributions are invested in a larger pool of funds, which can result in lower fees than if an individual invested on her or his own. Employees are automatically enrolled but can opt-out and have the flexibility to increase or reduce contributions. Only 10 per cent of Canadians employed at workplaces with less than 100 employees have access to a pension plan. The federal government introduced PRPP's to help address this gap and in turn the gap between the savings rates of Canadians and their expected retirement needs.
- Of those surveyed, 69 per cent are worried that they won't have enough savings to maintain their current lifestyle in retirement. That figure increases to 78 per cent for those that don't currently have a workplace retirement plan.
- The absence of a workplace retirement plan would discourage 69 per cent of employees from switching jobs to that employer.
- Seventy-seven per cent believe saving through a PRPP would make it easier for them to reach their retirement goals.