The majority of Canadians between age 35 and 54 are not saving enough for retirement, according to a new TD survey that looked at the demographic’s retirement readiness.

It found 60 per cent aren’t saving enough for retirement and don’t expect to retire on time while 29 per cent expect to be working in some capacity during retirement.

The survey also found that when it comes to funding retirement, only 38 per cent are relying on their workplace pension plan and 77 per cent said they would advise the next generation to start saving earlier. Retirement worries are keeping about one in four of those surveyed up at night.

Read: How to bring financial literacy into the workplace

“I think what employers can take away from this study is that average Canadians are saying they need help . . . ,” says Jenny Diplock, associate vice-president, personal savings and investing at TD Canada Trust. “Any time there’s an issue that’s keeping employees up at night is one we want to talk about and address. Ensuring our employees have the right amount of benefits set aside for their future is important.”

According to the survey, daily financial demands prevent generation-x Canadians from retiring on time. These include living expenses, mortgage or rent and childcare cost (61 per cent), existing debt  (42 per cent) and major unexpected life events such as divorce or the death of a spouse (19 per cent).

Read: 2016 CAP Member Survey: Deconstructing how different employees view their retirement

“One way that employers can help employees [prepare for retirement] is to help them with their savings,” says Diplock, noting companies can explore setting up automatic payroll deductions towards a retirement plan.

She also says promoting financial literacy among employees is important, especially for those who find certain aspects of finance challenging. This can done by employers hosting retirement seminars or bringing in personal finance experts, notes Diplock. “They’re great ways to provide information and help [employees] feel and be more informed of their retirement decisions.”

Read: My Take: Personal finance should be a mandatory course in high school

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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