Retirement plans have evolved considerably over the past decade. Today’s workforce is more diverse, with employees looking for more flexibility, a stronger focus on holistic well-being, and robust support for their long-term financial security. As a plan sponsor, you play a vital role in ensuring that your organization’s retirement offerings keep pace with these changing expectations. Here are key strategies to help you adapt your retirement plans.
- Diversify Plan Options
One of the most effective ways to meet varied employee needs is to offer multiple plan types. Traditional defined benefit (DB) plans provide predictable retirement income, while defined contribution (DC) plans, group RRSPs, DPSPs and TFSAs cater to employees who want more control over their investments. By offering a selection of plan models, you can accommodate different risk appetites and life stages, ultimately boosting overall participation.
Action Step: Regularly survey employees to understand their retirement priorities and adjust your plan based on their feedback.
- Embrace Flexible Retirement Pathways
Traditional retirement at 65 is no longer the norm. Today, many employees prefer phased retirement or part-time work post-retirement. Offering flexible options supports diverse lifestyle choices and allows organizations to retain experienced talent.
Action Step: Consider offering partial retirement benefits for employees who scale down to part-time roles. This might involve changing eligibility criteria or prorated employer matches that incentivize ongoing engagement.
- Integrate Holistic Well-Being Initiatives
Employees’ financial, physical, emotional, and mental health are all interconnected - and each significantly influences retirement readiness. Wellness programs that address stress management, nutrition, and exercise can enhance both productivity and longevity in the workforce. When combined with financial literacy programs, these initiatives ensure that employees feel fully supported as they plan for the future.
Action Step: Partner with healthcare providers or financial advisors to offer tailored webinars, workshops, and tools that encourage a healthier, more financially secure workforce.
- Use Technology for Engagement
From online portals to digital tools and mobile apps, technology can streamline plan administration and enhance the employee experience. Digital platforms allow staff to track contributions, model retirement outcomes, and even receive personalized investment recommendations - all in real time.
Action Step: Evaluate current technology solutions for any gaps in user-friendliness and accessibility. Look for consultants (like us at People Corporation) who know how to incorporate technology to streamline administrative process for you and enhance the employee experience.
- Prioritize Education and Communication
A well-structured plan can still go underutilized if employees don’t understand its benefits. Plan sponsors should prioritize ongoing communication, offering simple, jargon-free explanations of investment strategies, contribution limits, and the advantages of starting early. The goal is to replace complexity with clarity, and boost confidence and participation rates.
Action Step: Establish a regular cadence for educational content - monthly newsletters, quarterly webinars, or annual workshops - to keep retirement planning top of mind for employees.
- Review Plan Performance Regularly
No plan is indefinitely relevant. Economic shifts, changes in workforce demographics, and updates to regulatory frameworks can all necessitate plan adjustments. By reviewing plan performance and employee feedback on at least an annual basis, you can identify opportunities for improvement before they become pressing issues.
Action Step: Collaborate with financial consultants to conduct periodic benchmarking audits and identify areas that may need rebalancing or additional investment options.
Looking to learn more from data and best practices to optimize your retirement plans? Download our Next paper for an in-depth look at the changing retirement landscape, actionable insights, and real-world examples that highlight what it takes to future-proof your organization’s offerings.