Fully one quarter or 25 per cent of Sun Life group retirement plan members are not taking full advantage of their employer matching programs, this according to the most recent Designed for Savings report published by Sun Life Financial Canada.

“From inflation to interest rate hikes to soaring housing prices, life for Canadians is increasingly costly. With the pinch being felt across Canada, saving for retirement is taking a backseat for many,” the company states in an announcement about the report’s publication.

The report uses data from 1.4-million Sun Life group retirement plans members to identify workplace savings trends in Canada.

The research found the largest decrease in average contributions occurred among those in their thirties and forties – these declined seven per cent in the most recent report, followed by members in their fifties whose contributions dropped five per cent.

Men contributed $9,500 in 2022, compared to $7,700 for women. “This is despite nearly identical workplace savings plan participation rates,” they add. Total balances were $92,030 for men in 2022 and $69,410 for women during the same period.

“Women’s financial needs have traditionally been underserved and the latest Designed for Savings report indicated that this continues to be a gap,” says senior vice president of investment solutions with Sun Life Canada, and president of SLGI Asset Management Inc., Oricia Smith.

The report continues saying only four per cent of members moved money in between funds last year, down from eight per cent who made interfund changes in 2019. They say 48 per cent of interfund assets transferred were risk neutral while 25 per cent of assets were moved into higher risk investments and 27 per cent went into lower risk investments. “This represents less de-risking than we saw in the market gyrations of 2020,” the report states.