November 17, 2019

Canadians are passing up billions of dollars in pension plan contributions from their employers – The Globe and Mail

It is hard to believe that many employees either do not contribute at all or do not contribute the maximum amount allowed to their pension plan. A recent study determined that 3 to 4 billion dollars a year are passed up in Canada because employees were not part participating in their employer match programs for retirement savings. The study estimates that only 60% of employees participate in retirement plans and of those that do participate 20-25% do not make the maximum contribution. One of the reasons for non-participation is the complex and confusing amount of paperwork involved in voluntary participation. A recent trend toward auto enrollment is increasing participation in some company plans. You can accumulate lots of money over time simply by taking advantage of the full benefit of your pension plan.

Personal finance so often veers into tips for saving a tiny bit of money here and there in hopes of accumulating into something significant over time. Getting full value from your company’s pension plan is a way to accumulate lots of money over time.

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