EDMONTON, Jan. 18, 2018 /CNW/ - For a large percentage of older, working Albertans, the 'Freedom 55' dream is in jeopardy due to inadequate savings for a comfortable retirement, even though one of Albertans' top financial goals for 2018 is to save for retirement.
"Contributions to retirement savings are pushed off because people continue to focus on debt repayment and daily expenses," says Chris Turchansky, president of ATB Investor Services.
In Volume 10 of ATB Investor Beat, 48 per cent of Albertans report saving for retirement is a primary financial goal, with 48 per cent also stating paying down debt is an equally important financial goal. Three-in-ten Albertans project they will put more money into savings in the short term, whereas two-in-ten will do the same for their investments.
With 51 per cent of Albertans reporting to have a RRSP and only 31 per cent contributing regularly to their RRSP throughout the year, there is a great opportunity for more Albertans to begin saving for retirement. For example, as tax season approaches, of the 56 per cent who expect to receive a tax refund this year, only 12 per cent intend to put their refund back into their investments, whereas 41 per cent plan to put it into short-term savings. Having a financial plan can help maximize Albertans' RRSP contributions, and potentially include contributing their tax refund back to their RRSP.
"Everyone can take control of their savings for retirement—it's as simple as making a plan," says Turchansky. "To ensure you and your family save enough to be financially comfortable, start saving earlier and don't hesitate to get advice from trusted financial professionals. It's never too late to start saving and investing in your future, and the comfort of a plan will ensure you are on the right track."
Other highlights of this quarter's ATB Investor Beat survey include:
- Stocks achieved respectable returns, which contributed to the increase in investment optimism amongst Albertans over the past year, with stock market optimism tracking highest across all measured factors.
- Steadying oil prices have instilled Albertans with renewed confidence in our provincial economy overall, including job opportunities and the cost of living compared to the same time last year. Millennials continue to be the most positive about oil prices, perhaps a result of more lower-wage job opportunities becoming available.
- Many Albertans are less impacted by an increased cost of living and declining real estate values compared to the previous quarter.
- Fewer Albertans feel impacted by decreasing investment portfolio performance versus last year due to the overall decline in oil prices.
The ATB Investor Beat survey was conducted by Ipsos from October 13 to 24, 2017 and involved 1,000 participants. Results are considered accurate to within plus or minus 3.5 percentage points.
For the complete ATB Investor Beat results click here.
About ATB Financial
With assets of $48.6 billion, ATB Financial is Alberta's largest home-grown financial institution. Established in 1938, ATB is a network of 173 branches, 143 agencies, a Customer Care Centre, two Entrepreneur Centres, along with mobile and online banking. ATB's more than 5,000 team members help more than 730,000 customers in 247 Alberta communities.
SOURCE ATB Financial
For further information: To schedule an interview with Chris Turchansky, please contact: Michelle Stead, Senior Content Editor, ATB Financial, 587-987-4213, [email protected]