Communication key to reinforcing value of workplace retirement plans: report
Employers can reinforce the value of their workplace retirement plans by communicating to plan members about the importance of having money later versus money now, according to a new report by the National Institute on Ageing at Toronto Metropolitan University’s Pension Centre of Excellence.
The report analyzed responses from an NIA survey of 6,000 Canadians aged 50 and older, as well as behavioural economics research and administrative data. It found many employees prioritize having cash today over deferred compensation during their working years, attributed in part to behavioural biases such as present bias, loss aversion and lump-sum bias.