A new employer toolkit from Canada Life offers plan sponsors communication guides and flexible plan options to re-engage Gen Z savings behaviour
One in eight Gen Z workers believe the end of humanity will occur in their lifetime. That finding, drawn from research Canada Life commissioned through Deloitte's behavioural economics team, is changing how an entire generation approaches workplace savings.
“Where they feel that existential dread, they're 16 per cent less likely to own and enroll in longer-term savings and 3 per cent less likely to set up auto contributions. This is really important because with Gen Z today being about 27 per cent of the Canadian workforce, we know that's only going to grow to about 30 per cent after 2030,” said Kate Nazar, Toronto-based senior vice president, workplace retirement and savings at Canada Life.
That led Canada Life to release an employer toolkit built on the research findings. According to Nazar, it walks plan sponsors through a self-assessment of how they currently communicate with and engage younger workers, then offers a communication guide covering tone, dos and don'ts, and before-and-after messaging examples shaped by what Gen Z participants said in focus groups.
While the kit also includes ready-made templates and short-form video content, the broader goal is to translate the research into “a solution-oriented approach to helping them understand how to engage with Gen Z,” said Nazar.
A flexible plan design for plan members
According to Nazar, at enrolment, the member sees where the employer match is directed, which product it flows into, and at what percentage. From there, the process walks them through available options: a longer-term savings vehicle, a Tax-Free Savings Account (TFSA), or a First Home Savings Account (FHSA) with built-in tools like calculators and on-phone advice to support the decision.
Whether to offer the flexible design is up to each individual plan sponsor’s decision, shaped by workforce demographics and plan objectives, and it applies regardless of whether the sponsor runs a defined benefit (DB) plan, defined contribution (DC) plan, or retirement savings plan (RSP) arrangement.
“We see it not as a rejection of savings but really a desire for options that address both today's needs and tomorrow's goals,” said Nazar.
How the split contribution model works
Alongside the toolkit, Canada Life has introduced a split contribution model. Under the structure, the employer's contribution still flows into a longer-term savings vehicle - a DC plan, a group RSP, or similar, while the employee gains the option to direct their own portion toward shorter-term goals.
In practice, that could mean an employee redirects personal contributions to a TFSA or FHSA to save for a home, pay down student debt, or cover a near-term expense, Nazar noted.
“It doesn't always mean that they need to stay in this contribution schedule. At a certain point, Canada Life will be able to nudge them back into a longer-term savings vehicle. But it gives them the flexibility at a time when maybe they are managing some short-term financial needs,” said Nazar.
Separate Canada Life data, drawn from its 2026 Life in Focus benchmark report, shows that Gen Z members are withdrawing from their registered retirement savings plan (RRSP) at higher rates than older cohorts did at the same age. But Nazar stopped short of drawing any quick conclusions.
"It's really too early to say whether the trend is stabilizing or shifting towards specific savings vehicles," she said. "But the higher withdrawal rates reinforce what our research told us, and that's younger workers want savings options that can address, again, both today's needs and tomorrow's goals."
Why should plan sponsors invest in Gen Z savers?
Yet, Canada Life’s effort to support Gen Z also raises the question of why plan sponsors should invest in a generation that may not stay long enough, particularly as Gen Z is entering the workforce during a period of sharp economic uncertainty. According to Canada Life’s research, Gen Z workers change jobs on average 1.1 times a year, and only 45 per cent hold a full-time role.
But as Nazar argues, "by helping these early career employees meet near-term goals while building long-term financial security, employers are better positioned to attract, retain talent, support their growth, and strengthen their workforce confidence," she said.
"If every employer is thinking about it that way, if they're getting talent after 5 or 10 years, hopefully that employer has built that financial resilience. These benefits really contribute positively to the long-term resilience of Canada's economy if everyone is thinking about this and how to support Gen Z," Nazar added.
Despite the possible common misconception that plan sponsors assume Gen Z workers are rejecting saving outright or that Gen Zs are acting irresponsibly, Nazar emphasized the research allowed Canada Life to push back on that narrative.
She noted the data showed younger workers carry the weight of multiple existential risks and that they rank cost of living as an equal stressor to climate change and weapons of mass destruction.
Giving plan sponsors that clarity helps them understand what’s driving the behaviour gap. Nazar also believes Gen Z workers aren’t indifferent to saving, either.
“They’re anxious about the future and they’re looking for options that acknowledge their current reality and make saving feel relevant and achievable for their realities,” she said.
While the toolkit has just launched, Canada Life plans to track several metrics once sponsors adopt the flexible features: participation rates, whether employees choose the minimum contribution or go higher when given more options, and withdrawal behaviour.
"Ultimately, the success is about helping more employees build a savings habit, and we'll be keeping a close eye on that," she said.
