Are Canadian Workers Retiring Early?
When it comes to gearing up for retirement, Canadian companies are helping their workers prepare for a comfortable post-work lifestyle.
From early retirement to informing employees who are about to leave the workforce, retirement is just a stepping-stone for companies of all sizes.
With rest and relaxation in mind, here's a look at retirement in the Great White North and how companies like yours are handling the transition:
Retirement in Canada
Although it was once common, retirement at age 55 is no longer a reality in today's working world.
This is especially the case in Canada, where the retirement age is on the rise. If you've noticed your employees holding off on their retirement day, then your company isn't alone.
According to Statistics Canada, 50-year-old workers are waiting 14.3 years to retire. This number is up by almost 2 years over the past decade.
With workers in the 50 and older age bracket waiting longer to retire, your company and the Canadian economy as a whole might have to readjust expectations when it comes to hiring new blood.
Fortunately, there are ways your company can help prepare its workers for a timely, worry-free retirement.
How Companies Can Help
The more prepared your employees are for retirement, the easier the transition is for both your company and your workers.
You can help your employees get the retirement ball rolling by keeping them informed and up to date on everything there is to know about their upcoming retirement.
This includes saving for retirement and tips for planning an early retirement.
As the following article shows, employers can provide retirement advice and informational pamphlets that answer questions like, "Retiring Early? Here's what to know about your health insurance options." By covering all the bases, your employees will approach their retirement with confidence.
Retiring in Canada vs. the United States: Comparison
Not all countries follow the same retirement procedures, but it's helpful to see exactly how other countries handle the retirement process. Canada's neighbor to south has a similar retirement framework, yet there are some key differences.
For starters, Canadian workers only have one option when it comes to a retirement savings plan through their employer: the Registered Retirement Savings Plan or RRSP. Americans on the other hand have multiple savings plans to choose from including a traditional and Roth IRA, 401(k), and 403(b).
With said, Canada's RRSP has many of the same great benefits the American retirement plans offer including employer contributions.
In addition, with the number of options available, retirement planning in the U.S. can get a bit confusing whereas Canada's single option makes the process simple and straightforward.
When it comes to government backed retirement benefits, the U.S. has Supplemental Security Income and Social Security. The Canadian government gives more support to its retirees, which is great news for your employees.
There are three government sponsored retirement options in Canada: Old Age Security (OAS), Guaranteed Income Support (GIS), and Canada Pension Plans (CPP). The OAS plan offers benefits to all age qualifying Canadians whereas the GIS and CPP plans depend on income and contributions made during employment.
If your employees are thinking about retirement, keep in mind the Canadian retirement pointers above.
About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including finances and retirement.
Marketing matters: from IBM to Kyndryl
Prior to joining Kyndryl as Chief Marketing Officer, Maria had a 25-year career at IBM, most recently as the tech giant’s CMO where she oversaw all marketing professionals and activities across North America, Canada and Latin America. She has held senior global marketing positions in a variety of disciplines and business units across IBM, most notably strategic initiatives in Smarter Cities and Watson Customer Engagement, as well as leading teams in services, business analytics, and mobile and industry solutions. She is known for her work with teams to leverage data, analytics and cloud technologies to build deeper engagements with customers and partners.
With a passion for marketing, business and people, and a recognized expert in data-driven marketing and brand engagement, Maria talks to Business Chief about her new role, her leadership style and what success means to her.
You've recently moved from IBM to Kyndryl, joining as CMO. Tell us about this exciting new role?
I’m Chief Marketing Officer for Kyndryl, the independent company that will be created following the separation from IBM of its Managed Infrastructure Services business, expected to occur by the end of 2021. My role is to plan, develop, and execute Kyndryl's marketing and advertising initiatives. This includes building a company culture and brand identity on which we base our marketing and advertising strategy.
We have an amazing opportunity ahead at Kyndryl to create a company brand that will stand apart in the market by leading with our people first. Once we are an independent company, each Kyndryl employee will advance the vital systems that power human progress. Our people are devoted, restless, empathetic, and anticipatory – key qualities needed as we build on existing customer relationships and cultivate new ones. Our people are at the heart of this business and I am deeply hopeful and excited for our future.
What experiences have helped prepare you for this new opportunity?
I’ve had a very rich and diverse career history at IBM that has lasted 25+ years. I started out in sales but landed explored opportunities at IBM in different roles, business units, geographies, and functions. Marketing and business are my passions and I landed on Marketing because it allowed me to utilize both my left and right brain, bringing together art and science. In college, I was no tonly a business major, but an art major. I love marketing because I can leverage my extensive knowledge of business, while also being able to think openly and creatively.
The opportunities I was given during my time at IBM and my natural curiosity have led me to the path I’m on now and there’s no better next career step than a once-in-a-lifetime-opportunity to help launch a company. The core of my role at Kyndryl is to create a culture centered on our people and growing up in my career at IBM has allowed me to see first-hand how to prioritize people and ensure they are at the heart of progress in everything Kyndryl will do.
How would you describe your leadership style?
I believe that people aren't your greatest assets, they are your only assets. My platform and background for leadership has always been grounded in authenticity to who I am and centered on diversity and inclusion. I immigrated to the US from Chile when I was 10 years old and so I know the power and beauty that comes from leaning into what makes you different from other people, and that's what I want every person in my marketing organization to feel – the value in bringing their most authentic self to work every day. The way our employees feel when they show up for themselves authentically is how they will also show up for our customers, and strong relationships drive growth.
I think this is especially true in light of a world forever changed by the pandemic. Living through such an unprecedented time has reinforced that we are all humans. We can't lead or care for one another without empathy and I think leaders everywhere have been reminded of this.
What’s the best leadership advice you’ve received?
When I was growing up as an immigrant in North Carolina, I often wanted to be just like everyone else. But my mother always told me: Be unique, be memorable – you have an authentic view and experience of the world that no one else will ever have, so don't try to be anyone else but you.
What does success look like to you?
I think the concept of success is multi-faceted. From a career perspective, being in a job where you're respected and appreciated, and where you can see how your contributions are providing value by motivating your teams to be better – that's success! From a personal perspective, there is no greater accomplishment than investing in the next generation. I love mentoring younger professionals – they are the future. I want my legacy as a leader to include providing value in work culture, but also in leaving a personal impact on the lives of professionals who will carry the workforce forward. Finding a position in life with a job and company that offers me a chance at all of that is what success looks like to me.
What advice would you give to your younger self just starting out in the industry?
I've always been a naturally curious person and it's easy for me to over-commit to projects that pique my interest. I've learned over years of practice how to manage that, so to my younger self I’d say… prioritize the things that are most important, and then become amazing at those things.