$756,000 is the average amount
Canadians think they'll need in retirement, yet as many as 90 per
cent don't have a retirement plan
TORONTO, Feb. 8, 2018 /CNW/ - CIBC (CM:TSX)
(CM:NYSE) – Canadians estimate that they will need an average of
$756,000 in retirement savings, but
the vast majority (90 per cent) do not have a plan to
achieve the lifestyle they want in their golden years, a recent
CIBC poll finds. Moreover, women are less likely than men to be
retirement ready and more apt to rely on the advice of family and
friends.
"If you don't have a retirement plan, you're throwing darts at
numbers in the dark, guessing at how much you'll need to live on
comfortably once you've stopped working," says Jennifer Hubbard, Managing Director, CIBC
Financial Planning and Advice. "It's important to take an honest
look at your finances today, and determine 'what' your retirement
goals and dreams are because that will influence 'when' you retire
and 'how much' it will cost. That way, you can find the best path
to get from here to there."
A retirement plan involves determining the lifestyle you want to
lead in retirement and identifying your sources of income over and
above employer-sponsored plans, the Old Age Security and Canada
Pension Plan, or Quebec Pension Plan, estimating your expenses,
having a savings program, and managing your assets based on your
risk tolerance.
Key poll findings:
- 90 per cent of Canadians, who are not currently retired
or semi-retired, do not have a formal and detailed retirement plan
that describes the lifestyle they want
-
- 53 per cent aren't sure if they're saving enough
- 37 per cent either aren't able to save or haven't
thought about retirement
- $756,000 is the average
amount Canadians estimate they'll need in personal savings to
retire comfortably, while 26 per cent don't know
-
- Millennials (aged 18-34) believe they'll need the most at about
$917,000, compared to
$842,000 for Generation X
(aged 35-54), and $518,000 for
Boomers aged 55+
- $184,000 is the average
amount Canadians say they've saved for retirement
-
- 30 per cent have no retirement savings, and a further 19
per cent have saved less than $50,000
- 63 is the average age at which Canadians plan to, or
did, retire
On the cusp of retirement
The poll findings also show that almost a third (32 per
cent) of those nearing, or on the cusp of retirement age
(45-64), have nothing saved for their retirement; and among those
with retirement savings, the average value of their nest egg is
$345,000, while most (49
per cent) have saved less than $250,000.
"It's less about how much you've saved, but how your savings
line up -- or don't line up – with your lifestyle goals that really
matters," says Ms. Hubbard. "With so much on the go, your
retirement plan can be the single most powerful and effective tool
for building your wealth and financial security. And, it's never
too late to start."
Fewer women than men prepare for retirement
The poll also finds that fewer women than men have a formal
retirement plan, or at least a 'good idea' what their retirement
income needs will be, 22 per cent compared to 32 per
cent, respectively. Further, far more women than men at or
nearing retirement (aged 55+) don't have a plan in place, 43 per
cent compared to 27 per cent, respectively.
Nearly a third (32 per cent) of women admit they 'don't
know' how much personal savings they'll need to retire comfortably,
compared to 19 per cent of men, and among those with
retirement savings, women have saved on average nearly 25 per
cent less than men.
While the findings show few women and men seek expert advice
when saving for retirement, more women than men rely on the advice
of family and friends, especially those closest to retirement age
(55-64) at 21 per cent and 14 per cent,
respectively.
Despite the vast majority of women being either the primary or
joint decision makers when it comes to investing for their
household, only half said they feel confident or knowledgeable when
it comes to their finances, previous CIBC research found.
"The value of having a trusted financial advisor and
personalized financial roadmap is in the confidence and peace of
mind it gives you knowing that you're saving enough to comfortably
live the life you want both now and down the road," says Ms.
Hubbard.
Tips to Retire Well:
- Plan your lifestyle - make the future as predictable as
possible
- Understand your spending today and estimate what it's
likely to be in retirement
- Work with a financial advisor to project your income and
expenses
- Put your plan on auto-pilot with regular deposits to a
dedicated savings account
- Invest for the long term and revisit your investment
plan regularly, at least once a year
- Determine the best time to draw down on public pension
benefits or personal savings
KEY POLL FINDINGS:
How Canadians who are not currently retired or semi-retired
describe their retirement savings plan:
|
All
|
Men
|
Women
|
18-34
|
35-54
|
55+
|
I have a formal and
detailed plan that describes my desired retirement lifestyle, the
income I will need and I save regularly to achieve that
goal
|
10 %
|
13 %
|
8 %
|
8 %
|
11 %
|
14 %
|
I have a good idea
what my income needs will be and make regular contributions, but I
don't know if I'm saving enough
|
16 %
|
19 %
|
14 %
|
13 %
|
16 %
|
24 %
|
I make regular
deposits to my retirement savings account(s), but I don't know what
my income needs will be and I don't know if I'm saving
enough
|
21 %
|
21 %
|
21 %
|
23 %
|
21 %
|
14 %
|
I don't know what my
retirement income will be, but I try to put money aside towards
retirement when I can
|
16 %
|
15 %
|
16 %
|
20 %
|
13 %
|
12 %
|
I know I need to save
for retirement, but I'm not able to save
|
22 %
|
19 %
|
25 %
|
16 %
|
25 %
|
27 %
|
I haven't thought
about retirement and I have no savings dedicated to
retirement
|
15 %
|
14 %
|
17 %
|
20 %
|
14 %
|
8 %
|
Total amount of personal savings Canadians think they'll need or
thought they'd need to retire:
|
All CDNS
|
Men
|
Women
|
18-34
|
35-54
|
55+
|
$0
|
1 %
|
1 %
|
1 %
|
-
|
2 %
|
2 %
|
$1-$49,999
|
5 %
|
5 %
|
4 %
|
2 %
|
3 %
|
8 %
|
$50,000-$99,999
|
7 %
|
9 %
|
6 %
|
7 %
|
5 %
|
10 %
|
$100-000-$249,999
|
10 %
|
10 %
|
9 %
|
5 %
|
10 %
|
13 %
|
$250,000-$499,999
|
12 %
|
12 %
|
12 %
|
13 %
|
11 %
|
13 %
|
$500,000-$749,999
|
11 %
|
12 %
|
9 %
|
11 %
|
11 %
|
9 %
|
$750,000-$999,999
|
9 %
|
9 %
|
8 %
|
10 %
|
10 %
|
6 %
|
$1,000,000 -
$1,999,999
|
14 %
|
15 %
|
13 %
|
19 %
|
15 %
|
8 %
|
$2,000,000
|
6 %
|
7 %
|
4 %
|
7 %
|
7 %
|
2 %
|
I don't
know
|
26 %
|
19 %
|
32 %
|
25 %
|
25 %
|
28 %
|
Mean
|
$756,410
|
$779,950
|
$729,340
|
$916,750
|
$842,360
|
$518,240
|
Total amount of personal savings Canadians have saved for
retirement:
|
All CDNs
|
Male
|
Female
|
18-34
|
35-54
|
55+
|
$0
|
30 %
|
26 %
|
34 %
|
37 %
|
37 %
|
16 %
|
$1-$49,999
|
19 %
|
20 %
|
18 %
|
31 %
|
18 %
|
10 %
|
$50,000 -
$99,999
|
9 %
|
10 %
|
8 %
|
8 %
|
10 %
|
9 %
|
$100,000 -
$249,999
|
11 %
|
13 %
|
9 %
|
8 %
|
11 %
|
13 %
|
$250,000 -
$499,999
|
7 %
|
9 %
|
6 %
|
2 %
|
6 %
|
13 %
|
$500,000 -
$749,999
|
3 %
|
3 %
|
3 %
|
1 %
|
3 %
|
5 %
|
$750,000 -
$999,999
|
2 %
|
3 %
|
1 %
|
1 %
|
2 %
|
4 %
|
$1,000,000 -
$1,999,999
|
2 %
|
3 %
|
2 %
|
2 %
|
2 %
|
3 %
|
$2,000,000+
|
1 %
|
1 %
|
-
|
-
|
1 %
|
2 %
|
Prefer not to
say
|
11 %
|
10 %
|
12%
|
5 %
|
6 %
|
21 %
|
I don't
know
|
5 %
|
3 %
|
7%
|
5 %
|
5 %
|
5 %
|
Mean (including
$0)
|
$183,500
|
$225,900
|
$139,600
|
$95,000
|
$151,800
|
$315,800
|
Mean (excluding
$0)
|
$284,700
|
$319,600
|
$240,800
|
$160,400
|
$261,200
|
$404,000
|
Top sources for advice about saving for retirement among all
Canadians:
|
|
|
|
|
|
|
|
All
CDNS
|
M
|
F
|
18-34
|
35-54
|
55+
|
Financial
expert/professional
(NET)
|
35
%
|
38
%
|
32
%
|
26
%
|
31
%
|
47
%
|
|
Financial
planner
|
20 %
|
22 %
|
19 %
|
15 %
|
17 %
|
29 %
|
|
Professional
Investment
Advisor
|
15 %
|
19 %
|
12 %
|
12 %
|
13 %
|
21 %
|
|
Accountant
|
8 %
|
8 %
|
7 %
|
6 %
|
8 %
|
9 %
|
Family and/or
friends
|
22 %
|
18 %
|
25 %
|
40 %
|
16 %
|
12 %
|
Other
|
6 %
|
5 %
|
6 %
|
5 %
|
5 %
|
7 %
|
No one - I do
it myself
|
31 %
|
34 %
|
28 %
|
19 %
|
35 %
|
37 %
|
I haven't thought
about retirement
|
17 %
|
14 %
|
20 %
|
27 %
|
22 %
|
4 %
|
About the 2018 Retirement Savings Poll:
From January 12th to January 14th
2018 an online survey was conducted among 1,523 randomly
selected Canadian adults who are Angus Reid Forum panellists. The
margin of error—which measures sampling variability—is +/- 2.5%, 19
times out of 20. The results have been statistically weighted
according to education, age, gender and region (and in Quebec, language) Census data to ensure a
sample representative of the entire adult population of
Canada. Discrepancies in or
between totals are due to rounding.
About CIBC
CIBC is a leading Canadian-based global financial institution
with 11 million personal banking, business, public sector and
institutional clients. Across Personal and Small Business Banking,
Commercial Banking and Wealth Management, and Capital Markets
businesses, CIBC offers a full range of advice, solutions and
services through its leading digital banking network, and locations
across Canada, in the United States and around the world.
Ongoing news releases and more information about CIBC can be found
at www.cibc.com/en/about-cibc/media-centre.html or by
following on LinkedIn (www.linkedin.com/company/cibc),
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SOURCE CIBC - Consumer Research and Advice