The three-legged stool of retirement is a well-known concept, but it's time to take a closer look at one of its wobbly legs: workplace savings. In Canada, more than nine million Canadians don't have access to a workplace retirement plan, and the gap is especially noticeable at small and medium-sized businesses. This is a major issue, as workplace savings are a crucial component of a secure retirement. Without them, retirees have to rely more on personal savings, which can be unreliable due to inconsistent contributions and the ease of drawing down on accounts. This is where things get interesting. The C.D. Howe Institute has proposed a tax credit to encourage small businesses to offer retirement plans, which could help to address this issue. However, the cost and complexity of setting up and managing these plans can be a barrier for smaller employers. This is where companies like Sun Life come in. Sun Life has announced a workplace savings plan aimed at small and medium-sized businesses, with no setup fees or minimums. The plans include RRSP and TFSA options, and are built around Sun Life Global Investments' Granite target-date funds, which automatically shift from riskier investments to safer ones as retirement gets closer. This is a smart move for Sun Life, as it provides an opportunity for business growth. But it's also a smart move for employers, as it can help to improve employee productivity and engagement. In my opinion, this is a win-win situation. However, it's not just about the money. The C.D. Howe Institute's proposal also highlights the importance of policy changes to encourage more small businesses to offer retirement plans. The proposed tax credit could help to offset the startup costs and subsidize employer contributions, making it more feasible for smaller employers to offer these plans. This is a crucial step towards ensuring that all Canadians have access to workplace savings, and it's one that should be taken seriously. In conclusion, the wobbly leg of retirement's three-legged stool is a serious issue that needs to be addressed. Workplace savings are a crucial component of a secure retirement, and it's encouraging to see companies and organizations taking steps to improve access to these plans. However, it's also important to remember that this is just one piece of the puzzle. There are many other factors that contribute to a secure retirement, such as personal savings, government programs, and healthcare. As an expert, I think it's important to take a step back and think about the bigger picture. What does this mean for the future of retirement in Canada? How can we ensure that all Canadians have access to the resources they need to retire with security and dignity? These are questions that we need to be asking, and I believe that by working together, we can find solutions that will benefit everyone.
