Sponsor toolkit adds an assessment, communications guidance and templates aimed at Gen Z members
Canada Life has added workplace savings plan options that let employees direct their own contributions to short- and medium-term goals while the employer match or contribution is set aside for retirement.
In the release, Julia McGillis, executive vice-president at Canada Life, said that for many people retirement savings “may need to feel different too.”
Canada Life 2024 claims data cited in the white paper, The disappearing horizon, shows Gen Z employees, born between 1997 and 2012, are withdrawing from their RRSPs 12 percent more than Millennials, born between 1981 and 1996, and 42 percent more than Gen X, born between 1965 and 1980, did at the same age.
A 30-year-old today saves more and holds a higher RRSP balance than a 30-year-old did in 2018, according to group retirement services member data from Canada Life’s GCAP database.
The study drew on approximately 1,900 Canadian respondents, 40 percent of them Gen Z, using a randomized controlled experimental design.
Deloitte then ran focus groups with 11 Gen Z corporate employees each, alongside a review of member communications and journeys.
Gen Zs spend 74 minutes a day doomscrolling, about 70 percent more than the rest of the population.
Each additional hour spent doomscrolling daily is associated with a 4.4 percent lower probability of setting up automatic contributions toward long-term savings.
Thinking about the end of the world once more per month is linked to a four percentage point decrease in the likelihood of holding long-term savings products.
In the paper, Michelle Hilscher, senior manager, behavioural economics at Deloitte, said thinking about the end of the world makes people 16 percent less likely to own and enrol in long-term savings.
Hilscher said the finding holds across generations.
The paper lists five features:
- Payroll deductions
- A TFSA offered alongside the retirement plan so employees can make tax-free withdrawals for any purpose
- Personal contributions directed to shorter-term savings, with employer contributions going to longer-term products
- Plan reviews every one to three years
- A match allocation tool that puts employer-paid contributions toward longer-term vehicles
Testing showed Gen Zs were generally unreceptive to headlines relying on fearmongering, dystopian framing or superficial pop-culture references.
Messages recognizing the realities of an uncertain world and reinforcing resilience, agency and empowerment resonated more strongly.
Kate Nazar, senior vice-president, said planning decades ahead is a hard ask for young employees when the next 10 years feel uncertain.
Nazar said the company’s research shows Gen Z workers “can and do want to save” when offered options that match their circumstances.
Canada Life will also launch a campaign targeting Gen Z audiences on TikTok.
The release also sets out a toolkit for employers and plan sponsors containing an assessment, communications guidance, templates and short-form video content. Both were built on research Canada Life conducted with Deloitte Canada.
