January 29, 2024

Four in 10 Canadians not confident about retirement: TD survey

A whopping 43 per cent of Canadians say they are “not confident” that they will be able to retire when they initially had hoped to.

That’s a key finding from new research from TD Bank, reported on by Global News.

It looks like the increase in the cost of living is a key reason behind this lack of retirement confidence, the broadcaster reports.

“A majority (71 per cent) of the survey respondents also said that the high cost of living and inflation has made it increasingly challenging to meet their financial goals over the past year,” Global notes.

For its part, TD says the rocky economy is a good reason to consult professionals when thinking about personal finances, the article adds.

“Canada’s current economic climate continues to impact how Canadians approach their finances and investments, and that’s why it’s more important than ever to seek trusted advice,” Pat Giles, vice-president of saving and investing journey at TD, states in the article.

“In challenging economic conditions, the right financial support can make a significant difference, especially when balancing competing saving and spending priorities,” he tells Global News.

The article notes that the TD study follows a recent analysis by Deloitte Canada that discovered that “55 per cent of Canadians aged between 55 and 64 years will have to make changes to their lifestyles to avoid eating up all their savings during retirement,” the article continues.

Those responding to the TD poll said that “the high cost of living” has been holding them back from making contributions to their investments, such as registered retirement savings plans (RRSPs) and Tax Free Savings Accounts (TFSAs) this year.

Half (47 per cent) planned to make no contributions to RRSPs or TFSAs, and 46 per cent of that group specifically cited the higher cost of living as their reason to hold back.

More than half, or 54 per cent, have not set up a personalized plan to help them reach their savings goals, the article continues.

But it’s never too late to start, the article concludes.

“It’s a myth that you need to have a certain dollar figure to start prioritizing your financial future. No amount is too small to start saving or investing,” Giles states in the article.

One of the nice features of saving for retirement via the Saskatchewan Pension Plan is that you are in charge of deciding how much to contribute each payday, or each month. You can start at any level you like, and adjust your contributions as you go along.

Your contributions will then be invested in a low-cost, professionally managed, pooled fund. And when it’s time to retire and turn savings into income, SPP’s options include a lifetime annuity – you get a monthly payment for life – or the Variable Benefit, where you decide how much you want to withdraw in income, and how much you want to leave invested.

Check out SPP today!

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Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.


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