Less than half are confident that they knew the amount of money they will actually need in retirement
The annual retirement study by IG Wealth Management (IG) has found that about 72% of Canadians that were aged 35 years and above have already begun saving up for their retirement. Despite this, there were many who admitted to not having an actual retirement plan.
"While it's encouraging that Canadians are making saving for retirement a priority, it's a little concerning that so many are doing so without a proper roadmap in place nor with a sense of how much they'll need," said Christine Van Cauwenberghe, head of financial planning at IG Wealth Management.
The study found that 42% of respondents were saving up for their retirement without a retirement plan while 45% were confident that they knew the amount of money they will be needing when they retire. Among all the respondents, only 26% took inflation and changing economic conditions in their retirement plans.
“Retirement planning is nuanced – Canadians who adopt the do-it-yourself model are missing out on a real plan that considers all retirement income sources, how to manage debt, your legacy and tax efficiencies,” said Van Cauwenberghe.
“With added concerns around inflation and economic volatility on financial plans, specifically retirement, Canadians need a personalized retirement plan now more than ever to set them up for financial security in the future,” she said further.
The study also revealed that among the 36% of respondents that worked with a financial advisor, less than half of them stated that their advisor gave them support for retirement planning.
“Our industry has a significant opportunity – and responsibility – to think beyond just portfolio management and to focus on integrated financial planning,” said Van Cauwenberghe.
“The reality is that, while saving and investing for retirement or any other major life event is important, it's just part of the solution to achieving financial well-being. You also need to incorporate other key considerations and have them integrated into an overall action plan, which looks at all dimensions of your financial world,” she said further.
The study involved 1,305 adult Canadians who were aged 35 and above.
IG Wealth Management provides personalized financial solutions to Canadians through its network of advisors. It has $121.9 billion in assets under advisement as of January 31, 2024.
