Canada Life is introducing more flexible workplace savings options and new resources for employers as research conducted with Deloitte Canada finds uncertainty about the future is influencing how Generation Z approaches retirement planning.
The insurer said it has developed a toolkit to help employers adapt savings programs and communications to younger workers' priorities, alongside plans for a TikTok campaign promoting long-term saving among Gen Z audiences.
The initiatives respond to research suggesting that cost-of-living pressures are not the only challenge facing younger workers. Uncertainty about what lies ahead is making it harder for them to envision retirement, shifting the focus toward financial flexibility and resilience as well as long-term savings.
"At Canada Life, we know that for many, the future feels different and retirement savings may need to feel different too," said Julia McGillis, executive vice-president of workplace benefits and retirement. "We are seizing the opportunity to create retirement and savings solutions that are more relevant, more accessible, and offer more choice."
The company said the new workplace savings options will allow employees to put money toward short- and medium-term goals while still benefiting from employer matching or contributions that can be directed toward retirement. The approach is intended to give younger workers more choice in how they manage competing financial priorities.
Research points to changing savings habits
The research found that Gen Z workers are navigating financial planning against a backdrop of concerns about the future, including greater exposure to dystopian content and more frequent discussions about existential issues.
According to the findings, Gen Z respondents were twice as likely as the rest of the population to consume dystopian content several times a week. Consumption of that content was correlated with a lower likelihood of owning and enrolling in long-term savings plans.
The research also found that younger workers are saving but withdrawing money from retirement savings more frequently. The findings point to a challenge for employers seeking to encourage consistent contributions while recognizing that employees may need access to money for nearer-term priorities.
Canada Life said its research found that younger workers respond most favourably to savings messages emphasizing resilience, personal agency and empowerment rather than fear-based approaches. The company said those findings could help employers adjust how they communicate the benefits of workplace savings and retirement programs.
One research participant, age 26, described the appeal of practical steps that can be taken despite uncertainty.
"I want to know what is within my control ... small actions that you can do and that feels enticing to get started." - Research participant, age 26.
Kate Nazar, senior vice-president of workplace retirement and savings at Canada Life, said the findings suggest employers should recognize the difficulty younger workers may have in planning for a distant retirement when the nearer future also feels uncertain.
"Asking young employees to plan decades ahead can be difficult when the next 10 years feel uncertain," said Nazar. "Our research shows that when presented with options that feel relevant to their reality, Gen Z workers can and do want to save."
Toolkit targets employers and plan sponsors
The toolkit is designed to help employers understand how Gen Z employees approach financial planning and retirement, adapt workplace savings communications to reflect early-career workers' concerns and provide practical guidance on building financial and emotional resilience.
It includes an assessment, communications guidance, templates and short-form video content. Canada Life said the resources are intended to help employers provide straightforward information and actionable steps for employees facing an uncertain financial future.
The company also plans to launch a TikTok campaign aimed at Gen Z audiences to encourage long-term saving, building on the research findings.
Canada Life said workplace savings programs that address both immediate financial goals and longer-term security can help employers attract and retain talent, support growth and strengthen employees' confidence in their financial futures.
The initiatives reflect the company's view that workplace retirement programs may need to offer greater flexibility to remain relevant to younger employees entering the workforce amid economic uncertainty.
Canada Life is an insurance, wealth management and benefits provider and a subsidiary of Great-West Lifeco Inc., which is part of the Power Corporation of Canada group of companies. The company said it serves more than 14 million customer relationships across Canada.