Nearly three-quarters of Canadians ages 35 and older have started saving for retirement, according to IG Wealth Management's (IG) annual retirement study, released Feb. 15. However, the poll, conducted in partnership with Pollara Strategic Insights, also indicates that 42 per cent of these savers lack a retirement plan.
The study also found that only 45 per cent are confident they know how much money they will need for retirement, while just 26 per cent are taking into account factors such as inflation and changing economic conditions in their retirement planning.
Saving without a roadmap
"While it's encouraging that Canadians are making saving for retirement a priority, it's a little concerning that so many are doing so without a proper roadmap in place nor with a sense of how much they'll need," stated Christine Van Cauwenberghe, Head of Financial Planning at IG Wealth Management.
Apparently, even many Canadians who work with a financial advisor are lacking a plan. Only 36 per cent of the poll respondents who work with an advisor said that they receive retirement planning support from their advisor.
An opportunity and responsibility
"Our industry has a significant opportunity – and responsibility – to think beyond just portfolio management and to focus on integrated financial planning," said Van Cauwenberghe. "The reality is that, while saving and investing for retirement or any other major life event is important, it's just part of the solution to achieving financial well-being. You also need to incorporate other key considerations and have them integrated into an overall action plan, which looks at all dimensions of your financial world."
The poll was conducted from Jan. 9 to Jan. 17, 2024 with an online sample of 1,305 adult Canadians 35 years of age or older.