Over three quarters of retirees are enjoying the lifestyle they always imagined
TORONTO, Jan. 26, 2015 /CNW/ - With RRSP season now in full swing, it seems Canadians would be wise to listen to their elders when planning for retirement. According to a new survey by Tangerine, 90 per cent of retired Canadians say they were able to retire at the age they planned, and 77 per cent are now living the retirement lifestyle they envisioned.*
The same survey asked working Canadians what they expect out of retirement. While more than two-thirds (69 per cent) of current retirees finished their careers between the ages of 55-64, only 39 per cent of Canadians working today believe they will be able to retire in that timeframe. In addition, almost 1 in 5 (18 per cent) expect to work well into their seventies, and only 53 per cent of working Canadians surveyed believe they will be able to live the retired life they envision for themselves.
"These survey results show that the majority of working Canadians today do not expect to retire as young as our parents' generation," said Silvio Stroescu, Managing Director of Deposits and Investments at Tangerine. "The good news is that today's retirees show us that it is well within our reach to retire comfortably and on time, and that we just need to remain diligent in following through on our savings and investment goals to achieve the retirement lifestyle we desire."
THE ROAD TO RETIREMENT
Today, while half of all workers under the age of 30 say they have started to save for retirement, the majority (52 per cent) report not knowing how much money they'll need to save for retirement. And, out of those people who have not started saving for retirement, 59 per cent say they don't plan to begin until age 40.
In total, 78 per cent of working Canadians say they have started saving for retirement. Of those who have begun to save, 39 per cent reported that good money habits passed along by their parents is their prime motivator.
WORDS OF WISDOM
When asked what retirement advice they would give young Canadians today, almost three-quarters (73 per cent) of retirees said their advice would be to "make saving/investing for retirement a part of your budget."
Despite many seniors living the retirement lifestyle they envisioned for themselves, it seems you can never begin too early, as 57 per cent now say they wish they started saving for retirement sooner. Of the retirees who believe they should have put money away earlier, two-thirds (66 per cent) wish they started saving for retirement in their 20s.
The reason? Almost half (45 per cent) of retirees say the cost of living is much higher today than they ever expected, with 34 per cent saying they didn't realize just how much money was needed for retirement.
PREFERRED METHODS OF SAVING
More than half of all retirees (51 per cent) say that RRSPs were the most beneficial in planning for their retirement, and when looking back at their savings and investments, over 16 per cent of retired Canadians believe that setting up an automatic savings plan would have helped in planning their retirement. Currently, only 10% of the workforce have an automatic savings plan set up.
* To most accurately track the savings habits of retired Canadians, only those who indicated that they saved for retirement where included in this poll.
Survey methodology
From January 9 to January 14, 2015, an online survey was conducted among a sample of 1003 retired Canadians and 1007 working Canadians aged 18+ that are also Angus Reid Forum panel members. The margin of error — which measures sampling variability — is +/-3.1%, 19 times out of 20. Discrepancies in or between totals are due to rounding.
About Tangerine
Tangerine is a direct bank that delivers simplified everyday banking to Canadians. With more than 1.9 million clients and close to $38 billion in total assets, we are Canada's leading direct bank. Tangerine offers banking that is flexible and accessible, products and services that are innovative, fair fees, and award-winning client service. From no-fee daily chequing and high-interest savings accounts, GICs, RSPs, TFSAs, mortgages and mutual funds, Tangerine has the everyday banking products Canadians need. With over 1,000 employees in Canada, our presence extends beyond our website and Mobile Banking app to our 24/7 Contact Centres and our Café locations. Tangerine was launched as ING DIRECT Canada in 1997. In 2012 it was acquired by Scotiabank, and operates independently as a wholly-owned subsidiary. For more information, visit tangerine.ca
SOURCE Tangerine
Cayley Kochel, Tangerine, 416-497-5157 ext. 4013, [email protected]
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