Soaring cost of living - one third of retirees are feeling the pinch

Sun Life helps Clients with planning tools and strategies for retirement spending

TORONTO, Oct. 19, 2023 /CNW/ - Canadians spend most of their life saving, hoping for a smooth and relaxing retirement. But with rising inflation, interest rates, and healthcare costs many retirees are being forced to dig deeper into their retirement savings. Approximately 34% of retirees say their cost of living in retirement is higher than anticipated¹.

Canadians need support ensuring their retirement nest egg lasts a lifetime. Withdrawing and spending your retirement savings can be a tricky task. A vast majority of Canadians (85%) over the age of 40 are unsure how to withdraw from their retirement savings².

"For many Canadians, 'traditional' ideas of retirement no longer apply. Retirement isn't only about finances, Canadians need support navigating this stage of life," said Eric Monteiro, Senior Vice-President, Group Retirement Services, Sun Life. "Alongside employers, we play a key role helping Canadians rethink retirement income. Support, advice, and a strategy are key to living the retirement you imagined."

Demystifying the savings-to-income puzzle

Transitioning from retirement saving to spending, also known as decumulation, is complex. A strategy helps optimize hard-earned savings and account for expected and unexpected costs that arise during the golden years. Those that access support see the long-term benefits:

• 80% of Canadians feel more confident in retirement if they have a financial plan².
• Canadians with a Sun Life workplace retirement savings plan retire 1.5 years earlier than the average Canadian³.
• Canadians with a Sun Life workplace retirement savings plan that engage with digital financial tools have an average account balance almost twice as large as those who are not digitally engaged².

"When it comes to being retirement ready, there is no one-size-fits-all approach. Sun Life offers flexible, tailored advice through various digital channels, phone, video and tools to best meet individuals' unique needs," said Eric Monteiro. "This personalized support helps ensure Canadians are set up for lifetime financial security so they can live the retirement they dreamed of."

Employers bridging the gap between retirement saving and spending

The majority of employers (70%) want support helping employees understand decumulation². As one of the largest group retirement services providers in Canada, Sun Life has developed a Decumulation Playbook to help employers support their employees. The playbook outlines the innovative solutions and resources available to support employees to and through retirement.

Increasing financial security is one of the ways Sun Life is bringing its sustainability ambition to life. Read the 2023 Designed for Savings Report to learn more about workplace savings and retirement income trends in Canada.

Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30, 2023, Sun Life had total assets under management of $1.37 trillion. For more information, please visit www.sunlife.com.  

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF. 

Note to editors: All figures in Canadian dollars 

Media Relations Contact:             
Megan Hawkins                              
Manager                                         
Corporate Communications       
T. 647-524-8536         
[email protected] 

SOURCE Sun Life Financial Canada