Confidence a big advantage in retirement savings outcomes: Sun Life

A new retirement report from Sun Life suggests that confidence may matter more than financial knowledge when it comes to building long-term savings — and the gap between self-assured and cautious savers shows up in real dollars.

The survey found that highly confident savers contribute significantly more of their income compared with peers who are the opposite, even when financial literacy levels are similar.

According to the findings, confidence alone correlated with saving 64% more, while higher literacy on its own made a far smaller difference.

Sun Life says the two traits together — confidence and knowledge — form a powerful combination that sharply increases retirement readiness. “An 86 per cent difference in savings is staggering,” Dave Jones, senior vice-president, Group Retirement Services at Sun Life, said in a statement. “This isn’t just a stat — this confidence paradox is a wake-up call.”

Confidence plays an outsized role in savings behaviour

The full Member Mindsets, Motivations and Metrics report, based on a survey of more than 1,900 workplace plan members, highlights confidence as the strongest behavioural driver of retirement contributions.

Only 30% of surveyed members demonstrated both high confidence and strong financial literacy — yet this group saved almost four times their income. Those with low confidence and literacy saved just 2.1 times their income.

Sun Life notes that confidence influences everything from whether members seek professional advice to how often they engage with their accounts. Highly confident, knowledgeable savers are more likely to work with advisors, while cautious investors tend to lean on friends or family, increasing the risk of hesitation or under-saving.

These behavioural gaps matter, especially since 52% of respondents say workplace plans will be their main source of retirement income.

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Gender gaps persist in confidence and contributions

The report also highlights a persistent gender divide. Women were found to contribute 21% less than men to their workplace retirement plans, and are less likely to describe themselves as confident investors, according to the report.

Nearly four in 10 women (36%) avoid seeking financial advice because they feel they don’t have enough saved — a pattern Sun Life warns can compound shortfalls over time, especially given longer retirements and higher lifetime health costs.

Sun Life says employers can help narrow these gaps by making guidance easier to access. Seventy per cent of surveyed members want financial advisor access through their workplace plan, and nearly 80% express interest in features like auto-enrolment or auto-escalation, tools shown to meaningfully boost contributions.

Why workplace plans matter more than ever

With more Canadians relying on workplace retirement plans as their primary source of future income, Sun Life argues that plan design can meaningfully influence long-term outcomes.

Ninety per cent of surveyed members contribute enough to receive their full employer match, underscoring the power of clear incentives.

Jones says employers and plan providers have a growing opportunity to improve retirement readiness through confidence-building, simplified plan design and targeted communication.

“Workplace savings plans are filling a crucial gap for Canadians’ long-term financial security,” he said. “Simplified plan design, targeted communication strategies and accessible financial guidance make a measurable difference.”