Sponsors to focus on plan member communications

Canada’s pension plan sponsors are focusing on their communications with members, particularly about retirement income adequacy, according to a survey.

The Aon Hewitt 2012 Canadian Retirement Trends Survey finds that 95% of employers are somewhat or very confident in the competitive position of their plans.

However, only 16% are very confident their members understand the details of future retirement benefits, and only 12% are confident members are taking accountability for their own future.

As a result, 83% of sponsors will review their communications with plan members. That compares to 59% that are likely to assess the design of their plans in 2013.

“Improving communications can help ensure employees are better informed and can maximize the opportunities available to them,” says Will da Silva, senior partner, retirement consulting, with Aon Hewitt. “That way, employers could achieve a more positive return on investment and minimize the liability risks associated with inadequate communication efforts and materials.”