Considerations for plan design
About this toolkit / Module 4 - Considerations for plan design
While clear, relevant messaging is an important part of the equation, meaningful engagement also depends on whether plan design reflects how younger employees save, work and think about the future.
As Gen Z becomes a larger share of the workforce, you have an opportunity to reduce barriers to participation, increase flexibility and make workplace savings feel more relevant from day one.
The most effective plan designs balance behavioural guidance with flexibility.
By reducing eligibility delays, maintaining strong defaults, supporting multiple savings goals and simplifying decision-making, you can create a workplace savings experience that feels more relevant to how Gen Z employees actually live and save today.
The goal is not to abandon retirement planning. It’s to help younger employees take action now while building confidence in their future – whatever that future may look like.
Since Gen Zs tend to change jobs more frequently than previous generations, long eligibility or waiting periods can mean they spend a significant portion of their tenure unable to participate in workplace savings plans.
The easier it is for employees to start saving, the more likely they are to establish positive habits early.
Not necessarily – and focusing only on withdrawals may overlook the broader savings behaviour you're trying to influence.
The question may not be "How do we prevent every withdrawal?" but rather "How do we encourage more employees to begin saving and stay engaged with saving over the long term?"
For many younger employees, flexibility can serve as an entry point into developing strong savings habits, building confidence and ultimately accumulating greater wealth over their lifetime.
One of the clearest themes from the research is that many younger employees think about financial well-being differently than previous generations.
Retirement savings remains an important goal, but for many younger employees it’s only one of several competing financial priorities.
Rather than asking employees to choose between today's needs and tomorrow's security, you can design programs that support both. Allowing employees flexibility in how they direct their own contributions while reserving employer contributions for retirement-focused savings can help balance engagement with long-term retirement outcomes.
The goal isn't to replace retirement savings with short-term savings, but to acknowledge that employees are managing multiple financial goals simultaneously. A balanced approach allows them to direct their own contributions toward priorities that matter most to them today, while employer contributions continue to reinforce the plan's core retirement objective.
This approach allows employees to address immediate financial priorities while continuing to build retirement savings through employer support.
Flexibility can make workplace savings more relevant, but automatic enrolment can help make savings happen.
Note: The permissibility of automatic enrolment depends on the type of plan and the applicable jurisdiction.
While flexible plan design can better align with employees' financial priorities, it doesn't eliminate the behavioural barriers – such as procrastination, competing priorities and decision fatigue – that often prevent people from getting started.
That's why automatic enrolment remains one of the most effective plan design features, helping employees take that critical first step toward saving while still preserving the flexibility to adjust their contributions over time.
Highlight optional savings products available through your plan provider, giving your employees more flexibility at a reduced cost to you.
For example, your plan may only include an RRSP, while employees can still access a TFSA through Canada Life's Freedom Financial™ NextStep™ plan. Making employees aware of these options can help them find solutions that fit their needs without requiring you to redesign your entire plan.
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Moments that matter
This publication provides general information applicable to group benefit plans and is based on information available at the time of publication, which is subject to change.