Pension enrolment? Keep it simple

Simpler form can encourage more employees to join company plan: Study
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 01/24/2019

Making small changes to the way employees enrol in voluntary employer retirement savings plans can significantly increase the number of workers who participate in the plans and the rate at which they save, new research finds.

A joint study by Employment and Social Development Canada (ESDC) and Sun Life Financial found that simplifying enrolment forms and encouraging employees to complete the forms on the first day of work led to more employees joining their employer’s plan and choosing a contribution rate that would receive the full employer matching contribution.

“The results of the study clearly indicate that there are significant opportunities to improve employee participation in savings plans offered by their employers, and further, that the effort needed to achieve this improvement is relatively small,” said a report on the study.