Millions of non-retired people would save if they could, IG Wealth study reveals
Millions of Canadians who are not yet retired are spending their money now rather than saving for the long-term financial security. But it’s not because they want to fund a party lifestyle, it’s for more mundane things.
The rising cost of living is cited by 80% of respondents to a new report from IG Wealth Management to be making saving for retirement difficult, and 56% said they have delayed saving due to financial pressures.
While 18% are prioritizing enjoying their life now over retirement security, 38% of those who are putting today ahead of tomorrow are paying down debt as their primary financial strategy.
The next generations of retirees are looking forward to some things that previous generations have also coveted, such as travel (38% mentioned this in the Pollara Research survey), and hobbies and interests (33%).
But while 46% expect to retire before they are 65, one third expect to work later than 65 to afford basic living expenses, supplement income, or maintain social connections, and 17% expect to work part-time or doing consultancy work in their retirement years.
The research also found that just one third of non-retired participants said they work with a financial advisor, but among those that do three quarters said it helps them balance their current financial needs with retirement savings.
"Rising costs and mounting debt repayment challenges often undermine Canadians' ability to save for retirement," said Christine Van Cauwenberghe, head of financial planning at IG Wealth Management. “No two retirements are alike. With help from a financial advisor, Canadians can build a personalized retirement plan tailored to their unique needs to help manage today's financial pressures with their desired retirement lifestyle.”
