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Canadians imagine they might want to save up $1.7 million to retire, up 20 per cent from 2020, in keeping with a research printed by BMO Monetary Group on Tuesday.
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“Whereas the anticipated headwinds in 2023 will understandably immediate issues about how inflation and rates of interest will have an effect on our funds, Canadians stay resilient and are taking proactive measures to guard and spend money on their retirement nest egg,” stated Nicole Ow, the pinnacle of retail investments at BMO.
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The report stated Canadians are prioritizing retirement financial savings as each contributions and account holdings have elevated from the earlier 12 months. The nationwide common quantity held in Registered Retirement Financial savings Plan (RRSP) elevated two per cent to $144,613 in 2022, whereas virtually half of Canadians stated they’ve contributed to their RRSPs for the tax 12 months.
Nonetheless, regardless of believing they should save extra money, solely 44 per cent of Canadians are assured they may have sufficient to retire as deliberate, the research stated. This determine represents a ten per cent lower from 2020.
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As for retirement planning, the survey stated Canadians take totally different approaches, together with 22 per cent planning to retire at between the ages of 60 and 69 with a median age of 62.
In the meantime, amongst those that had skilled a significant life occasion, corresponding to beginning a household, transferring properties or beginning a brand new enterprise, because the starting of the pandemic, 20 per cent had skilled a lack of revenue and 9 per cent needed to make a big cost.
The research added that 69 per cent of Canadians imagine the state of the financial system has affected the quantity they’re saving, and 60 per cent say it has affected the cash they’re investing.
Canadians can look to monetary advisers to assist them stay centered on their monetary objectives throughout disruptions, main life occasions and uncertainty, Ow stated.
The BMO survey, performed by Pollara Strategic Insights, surveyed 1,500 grownup Canadians on-line between Nov. 4 and seven, 2022. The margin of error for a likelihood pattern of this measurement is ± 2.5 per cent, 19 occasions out of 20.
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