Many employers recognize that salary alone doesn’t secure lasting loyalty. A meaningful way to demonstrate genuine interest in each employee’s future is by offering a group retirement plan. Recent findings from RBC’s 2024 Beyond the Paycheck: Employee Engagement Report suggest that 68% of Canadians feel more committed to their workplaces when they have access to a well-structured retirement program.

Let’s explore together why group retirement plans matter for engagement and retention, and how organizations can implement them effectively.

The Link Between Group Retirement Plans and Employee Engagement

Demonstrating Long-Term Investment

When a company contributes to an employee’s retirement, it sends a powerful signal — one that says, “We’re invested in your future.” Manulife Financial (2025) found that 72% of surveyed Canadians are more inclined to stay with an employer if they see tangible support for long-term financial security. This perception builds deeper emotional connections to the organization.

‍Reducing Financial Anxiety

Financial concerns can hinder productivity. CIPD Canada (2024) indicates that workers who feel equipped to manage their long-term savings experience less stress and greater focus at work. By offering group retirement plans with clear contribution guidelines and resources, employers can help employees alleviate these concerns — often leading to increased morale and lower absenteeism.

Strengthening Organizational Culture

A supportive benefits package, including retirement planning, often aligns with a culture of care and respect. Indeed Canada (2023) notes that when employees perceive organizational support for their personal well-being, they’re more likely to recommend their workplace to friends and family. This advocacy fuels a positive cycle of strong engagement and improved talent attraction.

Key Retirement Plan features that Drive Loyalty

1. Employer-Matched Contributions: Matching a percentage of each employee’s contribution can amplify the value of a retirement plan. RBC (2024) reports that 79% of employees consider employer matching a “very important” factor in deciding where to work. Even a modest match communicates a commitment to long-term financial health.

2. Flexible Investment Options: Different age groups and risk tolerances benefit from diverse fund selections. Offering conservative, balanced, and growth-oriented funds allows employees to tailor their investments. According to CIPD Canada (2024), customizable investment choices increase plan satisfaction across a broad demographic.

3. Automatic Enrollment and Escalation: Studies from ADP Canada (2024) reveal that automatic enrollment can raise participation by up to 40%, as employees are more likely to stay enrolled than to opt out. Auto-escalation, where contributions gradually increase over time, further boosts long-term savings without overwhelming new participants.‍

How to Align Group Retirement Plans with Engagement Goals

1. Survey Employee Needs: Before rolling out or modifying a plan, gather feedback on preferences and pain points. Surveys, focus groups, or anonymous polls highlight which features matter most. This data-driven approach — recommended by CIPD Canada (2024) helps tailor a retirement program that resonates with everyone.

2. Provide Educational Resources: An excellent plan won’t achieve its potential if employees don’t understand it. Offer lunch-and-learn sessions, online tutorials, or one-on-one consultations with financial advisors. Manulife Financial (2025) points out that employees who feel informed about investment choices are significantly more confident about their future.

3. Ensure Transparent Communication: From contribution details to vesting schedules, clarity is key. Mercer Canada (2025) highlights that regular updates — via email campaigns, webinars, or staff meetings help maintain high participation and trust. Transparent communication also strengthens the perception that management genuinely cares about employee well-being.

4. Review Participation and Adjust as Needed: Consistent monitoring can reveal trends that inform future changes. If younger employees underutilize the plan, consider offering educational content tailored to first-time investors. If older staff seek accelerated savings, explore additional catch-up contribution options. Flexible, responsive adjustments keep the plan relevant over time.

Tips for Maximizing Engagement and Retention

1. Celebrate Milestones: Recognize employees when they reach certain savings milestones or length-of-service benchmarks. Small gestures — like a personalized email acknowledgement, can reinforce the value of long-term planning and cultivate a sense of achievement.

2. Integrate Retirement Planning into Overall Wellness: Link financial wellness to physical and mental well-being programs. ADP Canada (2024) shows that holistic initiatives, which incorporate financial counseling alongside stress management, can reduce employee burnout by 20% and amplify job satisfaction

3. Invite External Experts: Bringing in guest speakers or consultants for retirement workshops can provide fresh insights. Indeed Canada (2023) emphasizes that expert perspectives often motivate employees to save more and stay engaged in the plan. We offer our clients free workshops for employees with members of our team who have been training and educating employees and groups for 30+ years.

4. Highlight Success Stories: Share anonymized examples of how consistent contributions helped employees approach major life goals or transition smoothly to retirement. Success stories add a human element that resonates strongly, particularly for those just starting to save.
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A well-structured group retirement plan demonstrates a genuine commitment to your team’s future. By communicating clearly, providing educational support, and revisiting plan features regularly, organizations build a culture where employees feel valued and loyal.

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Disclaimer

‍The information provided is for general informational purposes only and should not be considered financial or legal advice. Consult professional advisors for guidance specific to your organization. While we strive for accuracy, we assume no liability for any errors or omissions.

Sources

1. RBC (2024). Beyond the Paycheck: Employee Engagement Report.

2. Manulife Financial (2025). Canadian Retirement Preparedness Survey.

3. CIPD Canada (2024). Employee Well-being Trends in Canada.

4. Indeed Canada (2023). Workplace Flexibility and Retention Study.

5. Mercer Canada (2025). Health and Benefits Outlook for Canadian Employers.

6. ADP Canada (2024). Financial Wellness at Work Survey.

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