The untapped value of supporting workers’ retirement preparation
“There is growing evidence of significant wealth gaps between women and men, white and colored Canadians, and aboriginal and non-aboriginal Canadians,” he added. âFor employers who are thinking about what they can do to reduce this wealth gap, offering an open plan that is accessible to all of their employees is a very important step. “
This statistic resonated with McCormick, as 80% of HOOPP members are women and women tend to have lower incomes in retirement. And while acknowledging that employers are going through a very difficult time with COVID, he suggested that during the all-important rebuilding process, they should consider shedding any preconceptions they might have had about retirement plans. being a pure fresh.
âFor business owners who may have preconceived ideas about the impact of setting up a retirement plan, we suggest that perhaps they should take another look,â said McCormick. “They might not have a plan that touches all of our five value drivers up front, but we think it’s something to consider to help their people, their business and the company as a whole.”
It’s not just business owners who have an interest. The paper also suggests that to broaden the adoption of workplace pension plans, the industry may consider providing more low-cost, high-quality options to small and medium-sized businesses that have never had access to them. . Beyond that, there is a need to communicate and educate investors on the value of these plans, and this is where wealth advisers could play a crucial role.
âPart of what we’re seeing is perhaps a greater overlap between the world of individual wealth management and the world of group benefits,â Mazer said. âAdvisors certainly have a role to play in helping employers put in place a high quality plan and communicate the value of that plan. Advisors also have a role to play in serving plan members, so that they can obtain support after they leave the employer and upon retirement as well.