But poll also reveals overwhelming support for having a financial plan to reach goals
Rising costs have upended the finances of most Canadians and that includes long-term goals such as retirement plans.
A new report from TD released today (Dec. 5) shows that 43% of respondents to its survey are not confident that they will be able to retire when they had hoped as interest rates and inflation have eroded their plans.
Tighter household budgets have significantly impacted retirement savings with 46% saying they have made no contributions to their investments in 2023 with 47% citing the higher cost of living. Seven in ten respondents said that the cost of living has made achieving their financial goals more challenging.
The survey shows the importance of having a personalized financial plan tailored to personal goals with 38% of those without such a plan saying they would feel more confident if they did. More than half of those who took part in the poll have not established a plan like this in the last year.
"Canada's current economic climate continues to impact how Canadians approach their finances and investments, and that's why it's more important than ever to seek trusted advice," said Pat Giles, Vice President, Saving & Investing Journey at TD. "In challenging economic conditions, the right financial support can make a significant difference, especially when balancing competing saving and spending priorities. Our survey shows that 90% of Canadians with a personalized financial plan believe it is helping them reach their financial goals."
Knowledge is key
Understanding retirement options is important but the study found that 47% of Canadians do not feel confident in their level of investment knowledge.
More than one third of Canadians not confident they know when to contribute to an RRSP versus a TFSA.
