Half (50 per cent) of Canadian employers are now offering financial planning services and 42 per cent are providing financial literacy resources, according to a new report by Arthur J. Gallagher & Co.
This is a significant increase from 2024, notes Pat Leo, vice-president of Toronto retirement at Gallagher. “With carriers in Canada now offering some type of financial-planning or wealth-management service, more plan sponsors are feeling comfortable with the idea of offering these services to their employees.”
The report, which analyzed data from more than 540 organizations across Canada, found 92 per cent indicated retirement savings and investment options are a top priority, and 40 per cent reported financial well-being — including retirement — has become more important.
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Additionally, employers are steadily shifting toward combined base and matching contributions — rising from 16 per cent in 2023 to 22 per cent in 2025.
“When you look at the matching formula, the beautiful thing about offering a base [within a group registered retirement savings plan arrangement] is that it really demonstrates a strong commitment to plan members,” says Leo. “You might have plan members that would love to participate in the plan, but they can’t afford to. When new people join and already have one per cent, it might eventually stimulate more interest for them to start saving . . . and it might also stimulate more savings from existing plan members. And frankly, it’s quite simple to do.”
The report also found employers are expanding choice and accessibility with plan options and customizable features, with 31 per cent offering group tax-free savings accounts to give employees more control over how they save.
“Our survey suggests that employees value choice, and [regarding] retirement we’re seeing this trend of adding [different types of] savings accounts,” notes Leo. “For example, some clients previously just offered a RRSP or [deferred profit-sharing plan] and now they’re thinking they should add a TFSA because they might have members that would really benefit from it. More recently, carriers have started to introduce the first home savings account, which some plan sponsors are considering offering to plan members.”
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Starting Jan. 1, 2026, a new guideline from the Canadian Association of Pension Supervisory Authorities advises plan sponsors to implement detailed frameworks for transparency, risk management and participant protection in employer-sponsored savings plans.
“This guideline has created an interesting move from a focus on member communication and information to now member communication and education. So we’ve been talking with plan sponsors about how they’ll need to have a solid education strategy moving into 2026 to reflect these updated guidelines. I think the education communication is going to be top of mind and we’re doing our part to make sure our clients have an increased focus on that moving forward.”
To help improve retirement readiness, Leo suggests employers work with their consultants and carriers to better understand their financial planning and wellness offerings, revisit their financial education strategy with the upcoming CAPSA guideline, and possibly engage in a discussion with the retirement or pension committee to decide if it’s time to refresh their plan design.