- Two-thirds of Canadians believe $1 million savings is enough to finance their retirement
- Two-thirds also worry about the impact a recession in 2023 will have on their ability to achieve their dream retirement
- Nearly half believe they can retire comfortably simply by focusing on investing in an RRSP
WINNIPEG, MB, February 1, 2023 /CNW/ – IG Wealth Management (IG) today released research on Canadians’ beliefs about retirement planning. According to the study, conducted in partnership with Pollara Strategic Insights, myths and misconceptions about retirement planning persist. This includes the view, shared by two-thirds (63 percent), that $1 million savings is enough for a comfortable retirement.
“It is surprising that so many Canadians believe $1 million savings is enough for retirement, as many don’t know what their cost of living will be when they retire,” said Christine Van Cauwenberghe, Head of Financial Planning, IG Wealth Management. “Generally, the amount one needs to retire comfortably depends on a variety of factors.”
M/s. Van Cauwenberghe continued, “Unfortunately, people are often misled by outdated information and may not be getting the comprehensive retirement planning help they deserve. With lifestyle expenses and added concerns surrounding the impact inflation on financial plans, especially retirement, Canadians need an individualized retirement plan to determine the number that will meet their unique needs.”
Other key findings of the study include:
- Two-thirds worry about the impact of a possible recession in 2023 on their financial situation and expect their cost of living to be higher in retirement than their current cost of living.
- A third (33%) don’t know what percentage of their current income they would need to cover expenses in retirement.
Demystification: are RRSPs enough?
Investing in an RRSP is an important way to save for retirement, but almost half (44%) of Canadians believe they can retire comfortably as long as they have saved enough through this program.
“It’s important to start saving for retirement as soon as possible, which means investing in an RRSP, but that’s only one piece of the retirement planning puzzle,” said Ms. Van Cauwenberghe. “A Certified Financial Planner can help you plan for your retirement, while highlighting other key things to consider, including any debt incurred, tax and estate planning, insurance needs, or budgeting. they can also give you insight on how to incorporate TFSAs, real estate and insurance into the investment mix.”
“Financial advisors take a holistic approach to retirement planning to determine all sources of income to help clients feel financially secure and confident as they plan for their golden years. In my experience, in general, those who work with a financial advisor to prepare for their retirement are more likely to be able to achieve their retirement goals,” concluded Ms. Van Cauwenberghe.
About the Pollara Study
This study was conducted with an online sample of 1,507 Canadians aged 18 or older who are not retired and was conducted between January 4, 2023 and January 10, 2023. Study results were weighted by region and gender to be representative of the population as a whole. The margin of error on a probability sample of this size would be +/- 2.5%, 19 times out of 20.
About IG Wealth Management
Founded in 1926, IG Wealth Management is a national leader in providing personalized financial solutions to Canadians through a network of advisors located across Canada. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has $110.8 billion in assets under advisement at December 31, 2022and is a member of IGM Financial Inc. (TSX: IGM) Group of companies. IGM Financial is one of from Canada leading diversified wealth and asset management companies with approximately $249 billion of total assets under management and advice as of December 31, 2022.
SOURCE IG Wealth Management
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