by Kim Siddall
Increasing longevity, better health and the elimination of mandatory retirement means many Canadians are delaying their retirement past age 65, presenting employers with both advantages and challenges for managing benefits for this unexpected segment of their workforce.
Statistics Canada’s last census indicated that one in four Canadian seniors were still working in some capacity past the traditional age of retirement, whether driven by choice or economic necessity. This finding was echoed by Sun Life’s last Unretirement index last year, which pointed to a growing number of Canadians who fully expect to still be working full time at age 66. In fact, 2015 marked the first year in the seven years of the study that more respondents expected to be working full time at 66 than those who expected to be fully retired. Read more
Canadians may need to rethink their risk management
In a recent study conducted by the Life Insurance and Market Research Association (LIMRA), it was reported that 61% of Canadians hold some form of life insurance. Surprisingly, it also revealed that only 38% of Canadians own an individual life insurance contract.
In another study of middle class Canadians, Manulife reported that 79% had no individual disability insurance and 87% had no individual critical illness coverage.
What both of these studies conclude is that most Canadians rely heavily on their group benefits for their family’s insurance protection.
What’s the problem with that?
- Group insurance protection is tied to employment and if the company for any reason changes or cancels the coverage, the employee stands to lose valuable and necessary protection. Read more
During his three-year tenure as a financial analyst at one of Canada’s biggest banks, Devon Wright never once used his company health plan.
“There was just nothing there that was of any interest to me,” says Wright, 28.
So when Wright quit his job in 2012 to launch technology company Turnstyle Solutions, he decided to create a benefits package tailored to his needs. Read more
A well-designed group benefits plan can be critical to attracting and retaining the right talent, as well as keeping employees healthy and productive at work.
But for small employers, offering a benefits plan is easier said than done.
While many small business owners want to provide their employees with some degree of coverage, obstacles stand in the way. As a result, many of the almost eight million Canadians who work at a small business are left without coverage, according to 2013 government stats. Read more