One-third of Canadian employees are willing to sacrifice a portion of their compensation in exchange for retirement security, finds Towers Watson. Meanwhile, one-in-four would give up a bonus for additional retirement benefits.
“[There’s] concern among Canadian workers about whether they will outlive their retirement savings,” says John McIntosh, plan design issue leader at Towers Watson.
He adds, “If this concern translates to widespread delays in retirement, employers will be faced with many challenges from the shifting workplace demographic.
“An older workforce could affect everything from health and productivity to succession planning and the expectations for training and development of the next generation required for future growth.”
Additional findings include:
- 50% of respondents with a Defined Benefit (DB) plan say it was a key reason for joining their current employer;
- Depending on age, between 62% and 71% of DB plan participants cite their retirement program as a reason to remain with their employer;
- Depending on age, between 30% and 50% of those with a Defined Contribution (DC) plan cite it as a reason to remain with their employer.