Winnipeg-based Great-West Life Assurance Co. Wenesday released its latest report on the Canadian capital accumulation plan market.
“The CAP Benchmark Report allows sponsors to benchmark their plans in order to create and maintain a successful group retirement program that is competitive and helps better position each member to reach their retirement income needs,” says Jeff Aarssen, vice president Group Retirement Services Sales & Marketing for Great-West Life.
The report also highlights strategies employers can use to dramatically improve their group plan participation, enable better-suited investment choices and ultimately assist more plan members in reaching their retirement goals. These strategies include: encouraging early enrolment, promoting meaningful contributions, lessening the impact of withdrawals and providing investment choice including age-adjusted mix options.
“Plan sponsors are making efforts to help their plan members reach their retirement income goals but there is still opportunity for improvement,” Aarssen says. “Advisors can also use this research to provide their clients with further insight into survey results and recommend plan design enhancements.”
Strategies detailed in the report include:
- encouraging early enrolment;
- promoting meaningful contributions;
- providing investment choice and addressing age-adjusted investment risk;
- essening the impact of withdrawals.
Now in its eighth year, the benchmark report is based on a survey by Benefits Canada / Canadian Institutional Investment Network of 380 organizations offering a defined contribution (DC) plan.