Many Canadian Employees Not Taking Full Advantage of Defined Contribution Pension Plans

Information posted January 10, 2015

retirement fund


If this does not apply to you please make sure that if your children or grandchildren are employed in a company that offers a Defined Contribution pension plan they are fully informed on this issue and are not missing out on “free money”.

According to a recent item in the Financial Post many Canadian workers are not taking full advantage  of “free money” for retirement being offered by their  employers. Many companies with defined-contribution pension plans match the contributions made by their employees often up to as much as 6% of earnings. No employee contribution however means no employer match. Similarly partial contributions will only receive a partial match.

Statistics show that many workers are failing to take advantage of their employer contributions, it  is estimated that up to 40 – 50% of available employer contributions are not being used, with as much as $3 billion of “free money”  not being used in contribution matching plans.

Please CLICK HERE to see the article that appeared in the Financial Post that will fully explain this situation.