We’ve all had moments when it felt like our minds were being pulled in too many directions at once. The technical term for that is “cognitive overload,” defined by the American Psychological Association as “the situation in which the demands placed on a person by mental work (the cognitive load) are greater than the person’s mental abilities can cope with.”[1]

Research has shown cognitive overload can limit resources available for analytic thinking, which leads to more decisions being made intuitively. This in turn results in more biased decision-making and more errors.[2]

That’s a big problem when plan members are making choices that determine their long-term financial security, says Véronique D’Amours, financial empowerment support advisor — financial empowerment centre with Desjardins. “Cognitive overload may influence financial decision-making in ways that don’t always support long-term financial empowerment.”

D’Amours adds that group retirement plans sometimes unintentionally contribute to cognitive overload. Some companies’ written materials and education sessions may use complex graphs and tables, specialized terms and lengthy presentations without visual aids or a refreshing break. Digital tools may have too many fields and ask for too many specific details, exhausting users and causing them to leave in the middle to go looking for information. Legal contracts and terms of use may be overwhelmingly dense. And any information in a language someone doesn’t understand fluently demands more brain power.

What does cognitive overload look like?

Geneviève Lamy, director of national education solutions, group retirement savings, at Desjardins Insurance, has seen cognitive overload in action.

“It often presents as hesitation, confusion or complete disengagement,” she says. “Plan members may ignore a call to action. They may delay decisions or ask the same questions over and over. These are clear signs for us that they are overwhelmed and that they’re not processing the information effectively.”

Lamy’s team teaches Desjardins Insurance’s education advisors to be aware of these signs so they can respond quickly when they detect them. The team also focuses on preparing plan member materials in more bite-sized formats, whether that’s a 20-minute learning capsule that gets straight to the point or an interactive Q&A session with light pre-work (a handful of questions to answer or a short video to watch) that primes them for the topic ahead of time.

“These formats really help plan members absorb information gradually and engage more actively. Using clear visuals, relatable examples and interactive tools also may support better retention and reduces mental fatigue,” Lamy says.

Overall, she adds, plan members can often get lost in retirement planning because they aren’t sure how to turn savings into income, navigate government programs and related tax implications and prepare for the lifestyle and identity shift that comes with retirement.

“To help, we offer [packages that may include] group sessions, one-on-one meetings and webinars that guide members through these decision points with clarity and empathy. We also recently launched the Retirement Toolbox — a self-guided resource with visual cues, peer conversations and prompts that address the financial aspects of retirement.”

What can plan sponsors do?

Plan sponsors can help confront the challenges of cognitive overload by collaborating closely with education teams, Lamy says. Employers may be able to assess the financial literacy level of their plan member population to enable education to be presented at the right levels and with the right languages. Employers can also use surveys to identify specific knowledge gaps and priority topics among employees so education is targeted where it’s needed. And they can streamline the plan member experience by reducing the number of platforms or touch points and promoting learning formats that respect plan members’ time and attention.

The positive impact goes beyond helping employees better navigate the benefits provided by their employer and reach their financial goals.

“When plan sponsors take steps to address [cognitive] overload, they’re not just improving the plan member experience. They’re also helping to support employee well-being and organizational performance,” Lamy says, pointing to National Payroll Institute research that found the mental weight of financial stress costs Canada nearly $54 billion in lost productivity every year.[3] “Better understanding and engagement with plan education can lead to more informed decisions, less financial stress and ultimately happier employees who could become more collaborative and resilient.”

So, tackling this pervasive issue has clear benefits for plan members — but also for plan sponsors who depend on their employees’ well-being to remain productive and competitive in the marketplace.

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Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company. Desjardins®, Desjardins Insurance®, all trademarks containing the word Desjardins, as well as related logos are trademarks of the Fédération des caisses Desjardins du Québec, used under licence. 200 Rue Des Commandeurs, Lévis QC G6V 6R2 / 1-866-647-5013

[1] “Cognitive overload,” APA Dictionary of Psychology. Definition updated on April 19, 2018. https://dictionary.apa.org/cognitive-overload

[2] Pat Croskerry, “ED cognition: any decision by anyone at any time,” Canadian Journal of Emergency Medicine, January 2013. https://www.researchgate.net/publication/262147339_ED_cognition_Any_decision_by_anyone_at_any_time#pf5

[3] Freschia Gonzales, “$53.9bn in lost productivity — is financial stress costing Canada too much?” Benefits and Pensions Monitor, September 27, 2024. Article cites findings from the 16th Annual National Payroll Institute Survey of Working Canadians, an online survey of 1,500 working Canadians conducted in 2024. https://www.benefitsandpensionsmonitor.com/benefits/mental-health/539bn-in-lost-productivity-is-financial-stress-costing-canada-too-much/388788