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Nearly half of Canadians not financially ready for retirement

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Date: Thursday Jan. 19, 2012 12:29 PM ET

Almost half of Canadians say they are not financially prepared for retirement -- including baby boomers who are mere years away from putting their working days behind them. 

The poll of 1,000 Canadians, conducted by Harris/Decima for CIBC, found 44 per cent of respondents said they were not financially ready for their retirement.

Among those aged 55 to 64, it was 31 per cent.

The poll also revealed that only 53 per cent of respondents said they had a long term investment plan for their retirement. Those in British Columbia were most likely to have a plan, while only 42 per cent of those in Alberta had a plan.

The good news was that among Canadians who said they did have a long-term plan for retirement, 76 per cent felt they'd be financially ready for their retirement years. That compares to just 25 per cent among those who didn't have a plan.

The results were based on phone surveys done by Harris/Decima between Dec. 8 and 12 of 1,005 Canadians. The results are considered representative of the population within 3.1 percentage points, 19 times out of 20.

Christina Kramer, an executive vice-president at CIBC, says with the Feb. 29 RRSP deadline beginning to loom, planning for retirement is something almost every Canadian thinks about at this time of year.

"And our poll results show that many would like to be further ahead when it comes to their retirement plans," she said in a statement.

Kramer suggests instead of making an RRSP contribution just before the deadline, Canadians should take some time to review their whole financial picture and decide what changes might be needed to keep making progress in their investments.

The poll comes amid findings that one-third of Canadians 55 years or older have at least 16 years left on their mortgage term. And a recent TD Bank report noted that seniors over the age of 65 have racked up debt at three times the average pace over the past decade.

Comments are now closed for this story

Blame Game
said

Love how many people on here are playing the blame game. When it comes down to it, you are in control over your own finances, spending, decisions. Stop blaming people in the media, government, etc... They are not going to take care of you. There ARE other ways of creating wealth, not just in money, but in life it's self. To many people are so inward looking they cannot see past their own shadow. Your full time job isn't going to cut it anymore... start looking for other opportunities ALONG with your full time job.


Janessa
said

This same story has probably appeared every January since RRSP's were invented. It is simply a way to conjure up investing in 'the system' to supposedly help you in your retirement years. Let's face it; it's not just a phrase but reality. Middle class is dwindling quickly by being downgraded to low income due to lost pensions etc. The 'new' wealthy are arrogant and ruthless. Then there are the politicans who have never been more padded with extravagance in the history of this country.


fox
said

Ian Ottawa. Well how lucky for you!


Janet
said

well the politicians have it made regardless of what the economy is like! For every dollar they put we, the taxpayers add 23.00! plus they are guaranteed 10% every year regardless! Hummm, which I could do the same!


Will
said

What are these endemic problems that you are referring to there Cindy-mae? not saving your money because you are spending it all on lifestyle choices, buying every new toy on credit instead of living within your means, or maybe taking expensive vacations? Try living within your means, you can live very well and still save for the future.


scott
said

Maybe someone out there can show me how to save for my retirement when every politician in this country keeps shoving their hands deeper into my pockets to fund their own 24 karat gold pensions and salaries. Wow, must be nice to have uncontrolled access to billions in taxpayers dollars, when seniors and ordinary canadians are being forced to get by with less and less every day. Poor politicians, being forced to choose between driving the porsche or the mercedies to get to work. How will they ever survive.


Retire???
said

RETIRE

I am in my 40's with 50 bucks in my bank account to last 2 weeks.

I have no savings and i am not a frivolous shopper.

I rent, have a modest, economical car and I can barely afford to drive to work let alone save a certain percentage of my money to retire on....I make more than minimum wage but in Nova Scotia a person cannot get ahead.

We are taxed and taxed, there is no cutting back for me as I have cut back as much as possible.

Splurging is buying whole wheat bread!

Entertainment funds are “having the ability to pay the cable bill”

Shopping consists of Milk, yogurt and butter….Life is grand….



Will
said

Take responsibility for yourself.


gavbo
said

run for govt gert elected ,you will be just fine!!!!


Rat-RippeR
said

I retired at age 52 and every day is like Saturday for me . I spend all summer at the lake fishing and when I retired I bought a brand new Truck and a brand new fishing boat . I could never have done this if my Union had not demanded a fair share for the workers at a factory that made billions of dollars . This pension never hurt the company one little bit and they still had money to expand and grow . All too often I see large companies not having pension plans for their workers where they put $1.00 in to match the workers $1.00 ..That is what we did . Companies now give too much money to their rich share holders instead of putting their workers first and we all have the Anti-Union bashers to thank for it . They wanted minimum wage with no benefits by destroying unions and now they have it . Companies like Walmart who reap billions in profit while paying minimum wage and no pension are the norm now and retirement for most will only be a meager old age pension . Unions make sure the companies pay the workers a fair share while at the same time balancing that wage so the company makes a good profit and grows . Workers perform better when paid a good wage and take less time off and this benefits the company , it doesn't harm it as most Union haters would have you believe . We owe minimum our wage and safety standards to the Unions also. A worker should earn a promotion based on his years of experience not how often he buys his boss coffee and the union makes sure everyone is treated fairly .


Dannie Brown
said

And this is news?????


Chris, Alberta
said

@ MikeW - if you are correct then that would indicate that unions do their job well and we need more of them. The idea is for all Canadians to be able to prepare for retirement not the opposite.


momof4
said

I think many need to take a course by Dave Ramsey. My family is a family of 6 (4 small children) living off of an income of less than 55,000...yet we have savings and RESP's set up for our children. You have to learn to live below your income in order to get ahead and if it's means living without the credit card..then do it! Living off of cash has saved our family and marriage of many stresses!


Set for life?
said

Several years go I was diagnosed with a progressive illness that would eventually prevent me from working before retirement age.I had always put away 20% of all my earnings.Two years ago I became to sick to work according to my employer of the last 22 years and i lost my job.After selling my home and all I owned i had $200,000.I was 7 years away from getting CPP and OAS.I set up a non refundable,non negotiable trust to pay me $1100 a month till age 65,knowing I would be living frugally till then.I receive no benefits of any kind from anybody.I thought I was set for life.Unfortunately the government changed the rules and now my reduced CPP pension will only be $389.Now they are eliminating the OAS for two years.I expected at 65 instead of living on $16000 yearly. I may now only be able to scrounge 8 or 9 thousand.A lot less than my MP who will retire with $146,000 yearly for working only 6 years.I'm at a point I am currently looking at moving into a heated garage ( out of desperation as my rent is too much) and use the local pool as my washroom,shower facilities.So yup I'm set for life.You see it doesn't matter how hard you try,the government will find a way to screw you.


Lookin' Forward to Freedom 85
said

The financial mess of the world, decimation of savings, crooked politicians, world 'Made in China', grocery prices, taxes - oh yeah I'm inspired to Freedom 85!


hannah
said

How does one save these days? Costs of everything are constantly going up...I hate living pay cheque to pay cheque and I don't even buy myself things. roof over my head and food in the cupboard just barely. Savings account is an oxymoron


Every Man/Woman for Themselves World Order
said

We Canadians are lectured by our elites constantly to be good citizens, pay our taxes ,work hard, vote and where does it get us? No where that's where. Cynical..oh yes..I never used to be but the dawning of reality of how we are hoodwinked by crafty career politicians grabbing pension plans funded by our collective slavery so they can live like feudal kings/queens has brought me to that conclusion. Corporations and their CEOs have no loyalty to those working under them when they exploit people around the world for their own greed. In this new world order it has become everyone for themselves. What is the point on being "honest" citizens when we are literally screwed in the ground by those representing us? I've had enough!


bikerborz
said

This has been repeated ad nauseum. Tell us something we DON'T know...


RWR
said

Ian in Ottawa - You are very lucky. Not everyone is able to do what you did no matter how they have planned. Cindy-Mae - Here Here. That is an article I would love to read. It won't happen though. It is too easy to just blame people for their own lack of funds.


MikeW
said

I would like to see this question posted to the Municipal, Provincial and Federal public sector employees (unions). My bet is the survey would show 100 % ready to retire.


Sal-sadly
said

We would have been ready for retirement if we had stashed our savings in a safety deposit box. Then we would still have a hundred thousand dollars - now we have fifty thousand and are grateful that we have a financial planner who did not run away with that! My son has time to recoup his losses, but we are in our 60's .... We worked hard all our lives and this happens.


Stephen
said

The problem is most people do not even attempt to commit to a plan or more likely have and idea how to create a retirement plan. It requires effort and planning you cannot expect someone else do it for you.It can be done I know as I had many years well below average income and am now retired with a significantly greater income.


Cindy-Mae
said

Question for the media. Why are you people not exploring the endemic problems that prevent most Canadians from having a reasonable and realistic retirement plan instead of cajoling them with almost a mockery implied for being 'irresponsible"? An investigative report into the systemic problems that Canadians deal with be it poor wages, over taxation, living costs that leaves them with little money is warranted and we rely on the media to enlighten us to how a happy retirement can be achieved and why it is difficult for most. Inequality is growing in Canada with the poor becoming poorer and rich not only richer but totally out in "la-la land" on how real people are managing. It's easy to point the finger when you are sitting pretty and financially sound at those who are not.


Michaelangelo
said

Half? I think it's a lot higher than that! You're obviously being very kind and selective with your percentages but not realistic.


Cindy-Mae
said

Question for the media. Why are you people not exploring the endemic problems that prevent most Canadians from have a reasonable and realistic retirement plan instead of cajoling them with almost a mockery implied for being 'irresponsible"? An investigative report into the systemic problems that Canadians deal with be it poor wages, over taxation, living costs that leaves them with little money is warranted and we rely on the media to enlighten us to how a happy retirement can be achieved and why it is difficult for most. Inequality is growing in Canada with the poor becoming poorer and rich not only richer but totally out in "la-la land" on how real people are managing. It's easy to point the finger when you are sitting pretty and financially sound at those who are not.


kg1
said

The average citizen may not be ready for retirement but isnt it good to know that on our backs the politicians will be and we all know we need to worry more them then ourselves!


Original Canadien
said

There is no way to be "financially ready" for retirement unless you have personnaly been able to put away a year's worth of money aside for every year you intend to be alive past retirement.I'm in my mid 40s and have nothing saved as I had to use my penasions and RRSP after two layoffs 5 years apart. EI was not going to give me anything anyhow since I had those amounts aside. and believe me, I'mnot one to rely on something like EI for income. I was working within a week each time, just not making anywhere what it costs to live in the GTA.I will never get to retire (6/49/max are just dreams - not real) yet my family has been here over 400 years. I am not livign beyond my means since I have nothing anyhow.


Ottawa Jack
said

Just wondering how many federal MPs participated in the retirement-ready survey & what their response was.


Mrs. Edna Lickamaid
said

Everyone I know who is in the age of retirement is too full of health issues to enjoy it. Great plan for our lives..huh? Work yourself to death , young, healthy so you can take the paltry savings you manage to scrape up and have a rockin' good time when your old and feeling like crap. Yes the joke is on most of us. (sarcasm intended)


sandra
said

Many Canadians aren't ready for retirement because they have been paying userers fees to pay for the cadillac pensions of politicians. Allow us to live in dignity by leaving some money in our pockets at the end of the month. That also will go a long way to improving the economy. You can't spend money on goods and services if you have no money.


Ian Ottawa
said

So lets hear who's to blame this time? Besides of course the people themselves, since they can do no wrong, or accept any blame?I came from a small town and had to move throughout my late teens to my adult years and staying with the same job and never questioning where I was going next. I didn't have the best house, car or was I able to holiday every summer or winter.Now I am retired and I am comfortable and I have a pension. We all make decisions in our life and not all of us look down the road. If you can start now before you join the 50% that is going to be a burden on society.


Kelly Willis
said

Here we go again with media foisting guilt on those already dog-kicked Canadians toiling to niche out a meager salary to pay for their daily existence on top of the guilt trip of paying for a "utopian" retirement. Honestly do you media people live in a glass bubble? We are not all Peter Mansbridge, Lisa LaFlamme, Bob Rae, Stephen Harpers. How do you expect many Canadians to have retirement funds when we cannot afford right-now existence life? Canada sure is an enigma of a nation that expects its citizens to provide themselves with a cozy retirement but at the same time drive a consumer economy for the good of our nation. It's difficult to be inspired since that consumerism mostly rewards "Made in China" since the majority of once good paying jobs that could have really gone a long way to shore up a nice retirement are now found in China where globalization or code for slavery is making corporations and their CEOs slop trough rich at all of our expense. Some one needs a reality check and don't lecture struggling Canadians that it is them that need it!


joe canada
said

retirement for me is the day the put me in a box and in the ground. I spend any extra money on trying to make a better future for my daughter not me.


Anne
said

It's very tiresome having these news stories in our faces ever other week. Many of us close to retirement, who had thought we would be secure and debt free have been blindsided by grown children who have lost jobs, divorce with custody battles, and on and on. We are well aware of our loss of retirement security. More of our money goes to taxes all the time, we try to save but it's a struggle. We are not blowing money on frivolities, just trying to survive, often helping family to survive as well.


Shaun
said

One question that should be asked is what kind of lifestyle are you planning on having during your retirement? Does that mean cutting back on expenses, living in a smaller place, etc... When people say they are ready for retirement what exactly does that mean? Think about it. I sure as heck don't want to live in some small crappy house because my income was cut big time. I'd rather create some kind of wealth, some kind of residual style of income so i can live a great life of retirement. I think people need to start thinking about that and then finding something that will allow that type of lifestyle.


Civil Servants/Politicians Ready 4 Retirement!
said

Why is this any surprise? Most Canadians are struggling, they do not have government civil servant jobs nor are they politicians with a golden salary, pension plan, medical benefits, retirement nest egg supplied by taxpayers. And to the media...most Canadians don't work in media nor have the salaries you make either. Surprise! Canadians are taxed to death and have very little tangible income to pay for anything via cash and when they do they are hammered by the costs of living and the grocery stores. The little entertainment they do manage to get in life if any isn't cheap either. So what is a person to do? Muddle through life eating sourgrapes as they slowly get to age 65 so they can kick up their heels and enjoy life when arthritic and full of old age related health problems? Retirement nest egg on wages at 1979 levels? Get real!


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