Canada’s financial system is not always easy to understand. It’s even more challenging if you’re new to Canada.
“A big obstacle for new Canadians is that financial systems are different in every country. It can be very confusing for them,” says Cary Brunett, Service Manager, Sutton Benefits and Pension, Saskatoon, Saskatchewan.
Forty-one per cent of newcomers surveyed in goeasy’s 2024 Canadian Financial Literacy Survey reported they do not have a good understanding of the Canadian financial system.
Many reported that financial tools, investment vehicles and savings strategies can be complicated—especially when language barriers and cultural differences are in the mix. According to the survey, 58 per cent of newcomers were afraid of making mistakes and 46 per cent didn’t understand financial jargon. As well, 52 per cent reported not knowing where to find reliable financial information.
Canada has one of the highest immigration rates per capita in the world, according to a March 2025 analysis by Statista. In 2023, immigrants accounted for 98 per cent of population growth, states the 2024 annual report of the Ministry of Immigration, Refugees and Citizenship. That translates into an opportunity to build loyalty among the new Canadians on your staff by tailoring communications about financial literacy to address their unique needs and concerns.
Savings a priority
The goeasy survey found that the top three priorities for more education, desired by about half of the surveyed new Canadians, are:
- how to file a tax return (54 per cent);
- savings strategies (51 per cent); and
- their credit score (49 per cent).
When it comes to savings, Brunett agrees that most new hires from outside Canada are very receptive to learning about savings vehicles such as group RRSPs. She also finds that initial communications, whether written or in person, need to keep things simple. “If we get too much into the weeds with the details, we lose people.”
An introductory group session is important to determine how to tailor education going forward. Brunett finds that new hires from outside Canada usually fall into one of two categories: the overwhelmed and the keen information seekers.
For those who are nervous about next steps, such as investment choices for RRSPs, Brunett says two or three additional meetings may be required—and a “buddy” employee can be a huge help. “For these individuals, a buddy who’s from the same country and speaks the same language can help interpret and reassure them that Canadian systems are solid and safe,” she says.
Those who are hungry for information appreciate at least one more session to dive into the logistics of how the plan is structured—whether that’s payroll contributions, waiting periods or tax implications. She also explains the bulk discount they’ll receive on fees by joining a group plan.
“We go over the plan and how it works, the different details, what their matching is—if that’s the kind of plan it is—and we show examples of how it will look coming off of their payroll so that they can understand what it will cost them to contribute,” says Brunett.
Additionally, she ensures that everyone understands that it will take at least a year before they can maximize their RRSP savings. “It takes earnings in a previous year and filing a tax return to receive contribution room through the Canada Revenue Agency. It can take a while for newcomers to get there, depending on the time of year they arrived.”
In cases where the employer matches contributions, many employees are eager to sign up immediately. “They don’t want to leave money on the table,” says Brunett.