Nicholas Sokic
Updated Jul 15, 2025
Despite the ever-changing and volatile market that 2025 has wrought so far, many Canadians are staying diligent in saving for retirement. This, according to a new Sun Life report. For example, the report notes that positive trends in member savings behaviours are continuing with average contributions reaching over $9,500, a 6% increase from 2022.
"The 'buy Canadian' sentiment that gained popularity earlier this year may also be having an impact on how people are investing their money. While some are adjusting their finances, it's encouraging to see that they aren't reactively pulling their money out of the market," Dave Jones, senior vice-president, group retirement services, said in a statement.
"Some clients are shifting their assets from U.S. equities into more conservative options. They're engaged and taking their financial future seriously while navigating through turbulence."
2025 halfway trends
In the first quarter of 2025, members moved their money out of U.S. equity funds at the highest rate witnessed since the beginning of the COVID-19 pandemic. While more people are reducing their risk exposure, they are not withdrawing their money from their plans. Withdrawal rates remain stable when compared to past years.
Advisors continue to prove their importance, with 70% of plan members who engaged with an advisor were more likely to take action towards their financial future compared to those who did not.
As well, target date funds (TDF) now hold 42% of plan member balances, up from 29% in 2018. Members investing solely in TDFs have outperformed those who invest in non-target date funds in eight of the last 10 years.
The Sun Life report also notes workplace savings plan members are also retiring, on average, two years earlier than the average Canadian, by leveraging what's available through workplace savings plans.
The average workplace plan account balance continues to grow, sitting at $94,220 up 16% from 2022.
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Nicholas Sokic
Contributor
Nicholas completed his master's in journalism and communications at Western University. Since then, he's worked as a reporter at the Financial Post, Healthing.ca, Sustainable Biz Canada and more. Aside from reporting, he also has experience in web production, social media management, photography and video production. His work can also be found in the Toronto Star, Yahoo Finance Canada, Electric Autonomy Canada and Exclaim among others.
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