A rebound in public equities markets in the second quarter of 2025 has positively impacted retirement outcomes for capital accumulation plan members, according to a new report by Eckler Ltd.
The consultancy’s latest CAP income tracker found a typical male member retiring at the end of June 2025 achieved a gross income replacement ratio of 65.9 per cent, up from 63.8 per cent in March. By comparison, a typical female member achieved 64.2 per cent, up from 62.2 per cent.
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However, the report noted younger workers today face greater financial pressures — including the rising cost of living, student debt and housing affordability — compared to their retirement-age colleagues, which can delay saving for retirement.
It urged employers to consider the use of tools such as flexible retirement plan designs, giving employees the ability to prioritize both short- and long-term goals such as allowing contributions to be directed into group registered retirement savings plans, tax-free savings accounts and first home savings accounts.
Financial wellness tools and education also play a critical role, the report noted. “Many young workers are not sure where to start when it comes to budgeting, investing or debt repayment. Offering access to financial planning resources, calculators, and interactive tools can help employees visualize their financial picture and make more informed decisions. Seeing how small contributions today grow over time, even while managing debt, is a powerful motivator.”
Read: CAP members’ 2024 outcomes highest since start of pandemic: report