About two-thirds of working Canadians have started saving for their retirement, but only 20 per cent have a detailed plan in place that tells them how much they will need to meet their retirement goals, according to IG Wealth Management’s 2022 Retirement/RRSP study.
The study, prepared by Pollara, indicates that these retirement savings are more likely to either be a plan that has people putting away a specific amount in hopes it will be enough when they retire (35 per cent) or putting money away when they can with no plan at all (30 per cent).
Younger people think they won’t need as much
The study also says that Canadians believe they will need an average of 56 per cent of their working income in their retirement. Those who are retired see this as a higher number, believing they need 62 per cent, while those who are working believe they will need 54 per cent. Younger people believe they will need less as well, with 18-34 year olds thinking they will need 49 per cent.
The study also states that many retirement plans do not include all the aspects they should. Many plans are most likely to include how much money people will need each month, how much they get from government and pensions and how much they will need to save, three-fifths say their plan includes what their retirement will look like (62 per cent) and when they will retire (60 per cent), only half say it includes a budget now to allow for savings (52 per cent) and debt repayment (49 per cent). The survey says that less than half say their plan includes how much insurance they will need (45 per cent) or an estate plan (41 per cent).
While most people say their RRSP is at least part of their retirement plan, only one-in-three say it is an important part.
