Unlocking lifetime financial wellness for Canadians

CAAT Pension Plan's Jillian Kennedy highlights how employers can rethink retirement planning for their workforce

Unlocking lifetime financial wellness for Canadians
Jillian Kennedy, CAAT

While defined contribution (DC) arrangements, group RRSPs, and similar retirement savings plans have been effective in helping individuals build savings, they often leave gaps when it comes to ensuring financial security during retirement as well as improving financial confidence along the way.

This creates significant stress for employees and adds complexity for employers striving to support financial wellness in their workforce.

Which is why we don’t need to think of decumulation – the very real challenge of converting savings into a sustainable retirement income as a technical challenge alone; it’s also a deeply human one.

Without a predictable, secure source of retirement income, Canadians face the unsettling possibility (and often reality) of outliving their savings. Which can lead to financial stress.

From an employer's perspective, gaps in retirement benefits often lead to substantial business impacts, including increased workforce turnover, elevated recruitment costs, decreased productivity, and disruptions to workforce planning.

Consider the impact of financial stress alone. Studies show it costs Canadian employers over $20 billion annually in lost productivity, equating to 7 to 14 working days per employee per year. This delay can lead to higher organizational costs, productivity issues, and fewer opportunities for younger talent to advance.

Moreover, as new regulatory guidelines reshape expectations for employers offering retirement arrangements like RRSPs and DC plans, companies are facing heightened responsibilities. The updated guidance brings a renewed focus on governance, risk management, and employee support—areas that demand thoughtful and often resource-intensive adjustments to align with best practices.

These challenges and shifting requirements underscore the need for retirement solutions that support both employees and employers, ensuring a secure, structured path to retirement for individuals. Additionally, they highlight the importance of fostering holistic employee wellness programs that address financial, physical, and mental well-being.

Supporting Retirement Readiness: Strategies for Employers in an Evolving Landscape

In a climate where retirement security, employee wellness, and business resilience are increasingly intertwined, finding sustainable, cost-effective solutions has never been more essential.

We’ve heard from business leaders across the country who are looking for ways to offer employees a deeply valuable benefit—one that enhances financial security, supports well-being, and strengthens their overall employee value proposition.

At the same time, they need a solution that fits within their budget, reduces administrative complexity, and helps them navigate workforce challenges. Without reliable retirement pathways, organizations can face productivity disruptions and talent bottlenecks, making it harder to retain experienced employees and develop future leaders.

These are some of the main reasons employers choose to join our Plan. Employers in our Plan have indicated that offering a sustainable, high-value retirement benefit has helped them address these challenges while strengthening their workforce for the future.

Rethinking Retirement Support for Canadians

Throughout my career, I’ve seen firsthand the impact traditional retirement arrangements can have on both employees and employers. Helping employees fill the gap in financial preparedness, especially around retirement planning, not only supports individual wellness but also strengthens organizational culture, creating an environment where employees feel supported, regardless of how long they stay with an organization.

In light of these issues, the conversation around retirement planning is evolving. Rather than focusing solely on saving, there’s growing interest in modern solutions which emphasize the importance of saving, retirement transition and the significance of predictable income and longevity protection. By providing stability, these innovative solutions can give employees peace of mind about their future, regardless of market fluctuations.

Importantly, these approaches can also relieve employers of some of the administrative and financial burdens, allowing them to offer meaningful employee benefit support without sacrificing their primary business objectives. We think of ourselves as an extension of your team.

For both employees and employers, the ultimate goal is to establish a balanced approach to retirement that fosters resilience and well-being across the workforce. This extends beyond just securing income—it also means supporting healthier retirement transitions, aligning with corporate values around employee care, and offering benefits that genuinely enhance the employee value proposition.

Building a Better Retirement Experience

In my work in the pension sector, I’ve witnessed the transformative impact of innovation in the industry. I’ve seen how modern and well-designed solutions have evolved to offer flexibility, choice and drive wellness for employees, while still helping organizations drive better outcomes. They not only improve the employee experience and strengthen workplace engagement but also mitigate many of the challenges employers face.

Employers who prioritize robust retirement options are not only helping to secure their employees' futures, but they’re also investing in a strong and adaptable organization. By embedding stability and support into retirement planning, we can create a more predictable, equitable retirement landscape that meets the expectations of today’s workforce and paves the way for a more secure future for all Canadians.

As chief strategy officer at CAAT Pension Plan, Jillian Kennedy leads initiatives to enhance the Plan’s strategic direction and expand modern defined benefit pension coverage across Canada. She’s committed to retirement income security and lifetime pensions for all.