Overall, Canadians' retirement outlook is bleak as preparedness lags
When people talk about their retirement, it often focuses on freedom from work, spending time with friends and family, perhaps travelling the world on luxury cruises.
But the retirement dream may never be realized for millions of Canadians who are woefully unprepared for their post-work years, according to new research from the Healthcare of Ontario Pension Plan (HOOPP) and Abacus Data which suggests a bleaker future could be ahead, especially for women.
The HOOPP 2024 Canadian Retirement Survey found that 49% of women have less than $5,000 saved compared to 33% of men, while 22% of all respondents have no savings at all. The survey was conducted among adults over 18 during April 2024.
More than one in three women aged 55-64 have no savings at all, compared to one in five men in the same age group, and this cohort of women are by far the most likely to have nothing saved, followed by 30% of women aged 35-54 (compared to 20% of men in the same age group).
Almost six in ten unretired poll participants said they do not feel at all prepared for retirement, again more women (64%) than men (49%) said this.
While almost half of the men who took part said they have enough income to save, this falls to just over one third among women, who are also more concerned about keeping up with everyday expenses and the impact of inflation on their income.
“We know women make less money than men and they are more likely to work part-time or take time off work to have children or look after their families,” said Ivana Zanardo, Head of Plan Services at HOOPP. “Factor in rising expenses and prolonged high interest rates and it’s no surprise that their retirement security is paying the price.”
Delayed retirement
As has been highlighted in other recent surveys, many Canadians are concerned that they may have to work longer than planned or never retire due to financial pressures. The HOOPP study reveals that 13% unretired Canadians don’t think they’ll ever retire and 26% plan to continue to work in retirement in order to support themselves.
Respondents also noted how financial worries impacted their mental health, again women were more likely to say they felt anxious, fearful, frustrated, or sad about their financial situation.
“Over the last few years, we’ve seen Canadians struggle to keep up, first with inflation and now with
interest rates and the cost of living,” said David Coletto, CEO, Abacus Data. “But a small cut in interest
rates won’t provide enough relief for Canadians, who told us they expect rates to continue to impact their ability to save even if they decrease slightly in the short-term.”
The survey also found that workplace pensions are considered important by most respondents, and 70% would give up some of their salary to get a (better) pension.
