Canadians Uninformed and Unprepared to RetireBy Andrew Rickard | October 28 2014 08:03AM
A recent report shows that many Canadians do not take retirement planning seriously.
The Conference Board of Canada has released a report based on two national surveys that focused on pension plans and retirement readiness; one survey dealt with employers and the other with individual Canadians. The results of the latter survey show that just 40% of Canadians consider retirement planning a priority, and about the same percentage have taken the time to formulate a retirement plan.
"There are some consistent themes that run through the data: women, younger Canadians, and those with lower levels of education and household income tend not to be planning for their retirement or preparing adequately for it," reads the report, which also reveals that only four in ten Canadians believe they have a good understanding of the public pension plan system and the income they will receive from it.
Although six in ten of those surveyed indicated that they are putting some money aside for retirement, mostly in registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs), 60% do not think it will not be enough.
"It is concerning that high percentages of older Canadians — including those arguably on the cusp of their retirement, aged 55 to 64 years — report that they have not saved enough," notes the Conference Board of Canada report. "Unless things change, we may expect more Canadians to be struggling to make ends meet during their ‘golden’ years."