Canadian Employers See Increase in Financial Advice to Employees as a Necessity

November 11, 2004 ( - Canadian employers who offer defined contribution (DC) plans overwhelmingly feel that providing access to financial advice to employees will be a necessity in the future, indicating shifting views in the Canadian DC plan landscape.

According to a report commissioned by Sun Life Financial and conducted by Benefits Canada magazine, almost 60% of employers feel that providing financial advice will be necessary in the coming years to participants in their DC plans. While only 6% of employers say they offer such advice, 25% say they will offer it within two years.

Sixty-three percent also think that they have a ‘moral and ethical obligation’ to ensure that contributing employees understand the information given to them. Fifty-four percent say that they currently provide information to employees, while 40% claim they offer education.

The study is based on 157 online surveys completed by Canadian employers who offer DC plans, hybrid plans, or group registered retirement plans. Sun Life Financial’s Group Retirement Services division supplies pension plan services in Canada, and has over C$28 billion in assets under administration.