“It’s surprising that so many Canadians believe $1 million in savings is enough for retirement, given that many don’t know what their retirement cost of living will be,” said Christine Van Cauwenberghe, head of financial planning at IG Wealth Management.
A third of respondents (33%) said they did not know what percentage of their current income they would need to cover expenses in retirement. In addition, two-thirds of Canadians say they are concerned about the impact that a recession in 2023 will have on their financial situation and are aware that their cost of living could increase in retirement.
Nearly six in 10 Gen Z respondents (59%) said they hadn’t started saving for retirement; about one in three millennials (31%) said the same.
When it comes to investment vehicles for retirement, nearly half of Canadians (44%) believe they can retire comfortably simply by focusing on investing in an RRSP.
However, an RRSP is only one piece of the retirement planning puzzle, said Van Cauwenberghe.
“Unfortunately, people are often misled by outdated information and may not be getting the full retirement planning help they deserve,” Van Cauwenberghe said.
“With lifestyle expenses and added concerns surrounding the impact of inflation on financial plans, especially retirement, Canadians need an individualized retirement plan to determine how many will meet their needs. unique needs.”
The study was commissioned by IG Wealth of Winnipeg and conducted in partnership with Pollara Strategic Insights among an online sample of 1,507 non-retired Canadians aged 18 and older between January 4 and January 10.