Despite the low share of non-retirees who have a plan, few intend to talk to a financial advisor this year
Retirement planning is low on most Canadians’ priorities despite a strong desire to boost financial resilience.
With the pandemic intensifying focus on finances and how lives can be disrupted without warning, three quarters of respondents to a new CIBC poll said they are making financial wellness a priority in 2022, with more than half noting a link between financial and overall wellness.
But it seems this does not extend to retirement planning, with just 5% expecting to speak to an advisor this year, even though 88% of non-retirees do not yet have a formal or detailed retirement plan.
This lack of protection for their long-term financial security is highlighted by the revelation that just 43% of respondents are confident they are saving enough for retirement.
Women at risk
Women are more likely than men (38% vs. 29%) to say they do not have an investment portfolio, more likely to be unsure of how much they will need to save for retirement (35% vs. 21%), and more likely to say they don’t know what age they will retire (32% vs. 22%).
"No one wants to be a financial burden to their loved ones in their retirement years, yet many are not confident they are saving enough to retire how and when they want,” said Carissa Lucreziano, Vice-President, CIBC Financial and Investment Advice. “This tells us many Canadians, especially women, can benefit from a conversation with a financial advisor.”
Portfolio changes
The survey also revealed that the pandemic has had little impact on approaches to investing with 79% saying that their strategy has remained the same since the onset of the pandemic.
However, among the 18-34 age group, behaviour changes are more common, with 30% indicating that their investment approach has changed vs. 14% of those in older cohorts.
