The analysis shows that women who benefit from financial advice and planning tools as part of their employer’s plan fare better than those who do not.
The study shows that the presence of financial advice at work increases by 69% the rate of maximization of additional contributions among plan participants. This percentage reaches 92% among women who have access to financial planning tools.
In addition, after receiving support and access to these tools, the proportion of women fully participating in additional contributions increases from 33% to 75%.
The study also indicates that women who use a planning tool offered by their plan sponsor outperform their male counterparts in increasing contributions. Among those with low financial confidence, the improvement reached 31 percentage points, compared to 9 points among men. The gap remains notable among those displaying high confidence, with a gain of 27 points, compared to 18 points for men.
Des inégalités qui pèsent
Several structural factors disadvantage women at the time of retirement. In 2024, women in the country earned on average 88 cents for every dollar earned by men. Respondents take parental leave more frequently (94% compared to 47% of men), thus interrupting their accumulation of rights and contributions.
More than half of the respondents say they have assumed the majority of caregiver responsibilities at least once in their career, impacting both their participation in the plan and their salary progression.
These inequalities reduce the time spent on saving and increase financial risks in retirement.
Perceptions erronées
The Sun Life study also reveals that many participants in employer plans overestimate their retirement savings: on average, they think they have accumulated $23,000 more than they actually have. More than half still consider their employer’s plan to be their main source of retirement income.
In addition, many do not know precisely the amount of additional contributions paid by their employer: only 63% identify it correctly, the others being uncertain or unaware.
What employers can do
Several actions make it possible to increase the participation of women in retirement plans, reports Sun Life. For example, automating certain key functions, like membership and dues increases.
Digital tools can also boost participation. The study finds that the most active participants on online platforms or mobile applications hold balances on average equivalent to 230% of those who do not use these tools.
Clearly present the additional contributions and financial incentives that count. Participants who understand their plan well maximize their contributions by 90%.
According to the study, the gender gap observed in maximizing contributions is mainly linked to confidence rather than a lack of financial knowledge. This gap can be filled through education, targeted training for women, educational resources and professional advice on retirement planning.
