The inclusion of automatic escalation in British Columbia-based defined contribution pension plans can support employees’ retirement readiness by increasing contributions and removing psychological barriers to saving, says Barbara Sanders, an associate professor of statistics and actuarial science at Simon Fraser University and co-lead of the National Institute on Ageing at Toronto Metropolitan University’s Pension Centre of Excellence.

“Adding the ability to automatically increase contributions . . . is known to be a very effective approach for improving retirement savings adequacy. We have lots of evidence from the U.S. [and] from an academic perspective, this is a much needed and well supported evidence-based........

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