Canadians are maintaining their commitment to retirement savings despite economic uncertainties, according to Sun Life's 2025 Designed for Savings report. The report, based on data from 1.5 million group retirement plan members, reveals that while Canadians are adjusting their investment strategies in response to market volatility, they are not abandoning their plans.
The study highlights a trend of reallocating investments rather than withdrawing funds. In the first quarter of 2025, there was a notable shift away from U.S. equity funds, marking the highest rate since the COVID-19 pandemic began. However, withdrawal rates have remained stable compared to previous years.
Average contributions to retirement plans have increased by 6% since 2022, reaching over $9,500. Additionally, member engagement with financial advisors has proven beneficial; those who consulted advisors were more likely to take proactive steps toward securing their financial future.
Target date funds (TDFs) continue to be a favored choice among plan members. TDFs now account for 42% of plan member balances, up from 29% in 2018. Members investing exclusively in TDFs have outperformed others in eight of the last ten years.
Dave Jones, Senior Vice-President of Group Retirement Services at Sun Life, commented on the situation: "The 'buy Canadian' sentiment that gained popularity earlier this year may also be having an impact on how people are investing their money." He added that clients are shifting assets into more conservative options and remain engaged with their financial futures.
While Canadians adjust their investment patterns and maintain course with workplace savings plans, they are retiring two years earlier than the national average. By leveraging workplace savings plans effectively, individuals can continue building wealth and securing lifetime financial security.
Sun Life offers several recommendations for optimizing retirement savings: maximizing workplace plan contributions—especially where employers match contributions—creating personalized financial plans using tools like Sun Life One Plan and consulting with advisors for tailored advice.
Rowena Chan, President of Sun Life Financial Distributors (Canada) Inc., emphasized the importance of trusted partnerships during uncertain times: "In times of change and uncertainty, having a trusted partner who understands your unique goals and needs is paramount."
For further insights into workplace savings trends in Canada, readers can refer to the full 2025 Designed for Savings Report.
Sun Life operates internationally across various markets including Canada and had total assets under management amounting to $1.55 trillion as of March 31, 2025.