Research shows Canadians losing confidence in their plans for retirement
TORONTO and VANCOUVER, BC, June 26, 2023 /CNW/ - Canadians' confidence in their ability to retire on time and debt free declined between 2016 and 2022, according to a new research report released by the Canadian Public Pension Leadership Council (CPPLC).
CPPLC is a non-partisan group of senior public sector pension plan leaders dedicated to informing the evolving discussions about retirement income security for working Canadians. CPPLC's latest report, The Pensions Canadians Want: Perceptions of Retirement (2016–2022), is based on a 2022 survey that looks at Canadians' views on retirement and compares them with findings from a previous national survey conducted in 2016.
"We checked in with Canadians on their feelings about retirement. We see they are less confident about their finances than they were in 2016," said CPPLC co-chair Derek Dobson. "Many worry they could run out of money during retirement. People have been through the COVID-19 pandemic and cost-of-living increases. The financial stress they are feeling affects workplaces and households throughout Canada."
CPPLC commissioned Pollara Strategic Insights to conduct an online survey in September 2022 with 2,001 randomly selected Canadian participants, representing various age groups, genders and locations. The survey explored retirement expectations, desires and strategies. Results were compared to a 2016 Ipsos Reid poll commissioned by CPPLC, with both surveys containing many of the same questions.
"The data shows how geography, gender and access to a workplace pension may have affected Canadians' retirement perceptions during the last six years," Dobson said. "As a group, Canadians are less confident they will achieve their financial objectives. They are also hesitant about managing their own retirement savings."
According to survey results, Canadians were 15 per cent less likely in 2022 to express confidence they will retire on time compared to 2016. Respondents expect to work an average of six years longer than they want to and are also 16 per cent less likely to believe they could retire debt free.
The report also provides insights for pension administrators, employers and policymakers to better understand Canadians' retirement needs and offers recommendations for working collectively to help Canadians achieve their retirement goals.
"In Canada, 60 per cent of people do not have a workplace pension plan. These results highlight a pressing need to expand retirement income coverage in Canada," Dobson said. "We also recommend employers continue to invest in financial literacy programs for employees."
The following is a summary of recommendations and key findings included in The Pensions Canadians Want: Perceptions of Retirement (2016-2022):
The following is a summary of recommendations included in The Pensions Canadians Want: Perceptions of Retirement (2016-2022):
1. Expand retirement income coverage in Canada.
- Increase access to collective plans.
- Make it easier to provide pension plans for every Canadian.
- Empower innovation to improve access to lifetime income.
2. Continue investing in financial literacy programs.
KEY FINDINGS
- Stress about retirement permeates all aspects of Canadians' lives. They report effects on their personal health (28 per cent), career decisions (23 per cent) and choice of employers (23 per cent).
- Women are 12 per cent more likely than men to be concerned about running out of money during retirement.
- British Columbians are the least confident they can maintain their standard of living in retirement, followed closely by Ontarians. According to Statistics Canada, BC and Ontario had the highest rates of unaffordable housing in 2021, particularly in Toronto and Vancouver.
- Canadians worry climate change will impact their expenses. Most (71 per cent) believe climate change will increase their daily living costs.
- About one in five Canadians without a workplace pension feel confident they can retire when they want to and maintain their standard of living. This improved to one in three among Canadians with a workplace pension plan.
More details on Canadians' perspectives about retirement can be found in the full report, The Pensions Canadians Want: Perceptions of Retirement (2016-2022), available at cpplc.ca/research.
CPPLC is a non-partisan group of senior public sector pension plan leaders from across Canada. Established in 2013, CPPLC is dedicated to informing the evolving discussions about retirement income security for working Canadians. As a research-focused organization, CPPLC commissions and promotes research that supports the value of predictable lifetime pension benefits in Canada. For more information about the council, visit cpplc.ca.
Pollara Strategic Insights is a full-service research firm comprising some of Canada's most senior and experienced research project leaders. It is involved in all sectors and disciplines of industry. It offers a range of research methodology to provide key insights on human behaviour, attitudes, wants and needs. For more information about Pollara, visit pollara.com.
SOURCE Canadian Public Pension Leadership Council
MEDIA: Vicki Lam, 647 837-3940, [email protected]
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