CIBC poll: Less than one-third of Canadians have a financial plan
CIBC recently conducted an online survey of 1,522 randomly selected Canadian adults and these are some of the survey's key findings of Canadians and retirement.
- Less than one-third of Canadians have a financial plan
- 11 percent don't have any savings and will rely solely on CPP and/or OAS
- 26 percent are not confident with the retirement plan they have put in place
- More than one-third (35 percent) worry about outliving the savings they set aside for retirement.
"The retirement landscape is shifting as baby boomers reach traditional retirement age with a smaller nest egg than they expected to have," says Christina Kramer, Executive Vice President of Retail Distribution and Channel Strategy for CIBC. "Many Canadians are now planning to draw on multiple sources of income including employment to fund their retirement, and that makes getting advice about how to manage your income, savings, and investments even more important."
Kathleen Woodard, SVP, Personal and Small Business Banking, CIBC,points out the importance of saving up for retirement, "The transition into retirement is a very pivotal moment in life, and there are steps that should be taken to ensure that your financial situation is secure," "The most important first step is to have a plan in place to get yourself there."
The survey found that a lot of baby boomers fell short of what they expected to have saved by this stage in their life, with 45 percent having saved less than $100,000. It is expected that baby boomers would nonetheless utilize their 50s and early 60s as savings building years. Boomers who plan to keep working after retirement might find it easier to put money away for the future.
"Even though you may have fallen short of where you had planned to be in terms of your savings, the years just before retirement can be some of the best years to further your savings and put money away for the future," says Ms. Kramer. "Take advantage of the opportunity to add whatever you can to your savings even if your planned retirement from full-time work is only a few years away."
However, the poll shows that Canadians in their 50s don't plan to maintain their current job after retirement, fortunately, most say they are looking to find a balance between staying active, earning income, and having time for themselves.
53 percent of Canadians in their 50s plan to work even after retirement, a lot of people in this group, however, are opting for part-time work.
Ms. Kramer notes that making a retirement plan is more than just opting for what’s most comfortable, it includes elements such as income, savings and tax. "Understanding how all of these elements of your retirement plan fit together can go a long way towards making you feel more confident about your finances as you approach retirement,"she says.
CIBC plans to host upcoming informational seminars, providing financial advice for pre and current retirees.