CAP Guidelines Set the Standard
But what is your provider doing about it?
We believe the updated guidelines from CAPSA regarding the CAP (Capital Accumulation Plans) Guidelines addresses concerns about ongoing suboptimal plan member outcomes, emphasizing the need for additional advice and services to drive improvement.
In recent years, investment regulators have introduced additional requirements for financial advisors and planners to enhance transparency in areas such as fees and conflict-of-interest disclosures.
Similarly, we believe the 2024 CAP updates aim to standardize practices, ensuring Canadian investors receive consistent, high-quality service regardless of where their investments are held.
The numbers tell the truth
While the 2024 CAP guidelines offer clear steps for plan improvement, it’s essential to understand the real-world challenges plan members face. Financial stress continues to be a dominant concern for Canadians, shaping their well-being and retirement readiness. Plan sponsors are increasingly seeking insights into the financial issues that cause the most stress to identify meaningful solutions for their employees.
Three years in a row, Canadians say money causes them the most stress in life. There is a significant four-point increase in the number of Canadians who say that money causes them the most stress. BIPOC Canadians, those <55 and those earning <50K in annual household income are more likely to say money causes them the most stress. 29% of retired Canadians report that money is their main stressor. ¹
Capital Accumulation Plans play a crucial role in the broader context of compensation, a fact recognized by both plan sponsors and members. The following data sheds light on specific financial stressors, with a particular focus on challenges faced by younger generations.
Historically, less emphasis has been placed on the dual-purpose planning capabilities of CAPs, underscoring the need for plan sponsors to thoroughly review their plans. By doing so, they can ensure their CAPs deliver value across all generational cohorts within their organization.
The root causes of financial stress become clear when we examine the top financial pressures facing Canadians today.
Bill payments, saving for retirement and saving for a major purchase are the top three financial stressors for Canadians.
37% are stressing about bill payments/expenses, roughly a one third are stressed by saving enough for retirement (35%), saving enough for a planned major purchase (31%) and/or by their debt (30%). Roughly two-in-ten stress about job/ income stability (21%), lack of control (15%) and/or investing (15%).²
Why does this matter?
Because despite the updated CAPSA guidelines and growing attention on financial wellness, there’s still a major disconnect between what plans are designed to do and what members actually experience.
We have compliance frameworks.
We have plan structures.
But what we don’t always have is engagement, education, or meaningful outcomes.
Too often, members are not given the right choices or the tools, advice, or context they need.
That’s our mandate at BFS Benefits & Retirement: to ensure everything is working as it should—benefiting both the business and its employees.
Ongoing financial stress, missed retirement goals, and a growing sense of uncertainty—especially among the most vulnerable demographic groups.
Without impactful plan design, proactive support, personalized guidance, and a commitment to long-term financial literacy, the potential of your business and team is left on the table.
If you ready to change that, it’s time to talk to us.