EDMONTON, Jan. 12, 2017 /CNW/ - The latest edition of the ATB Investor Beat shows Albertans are now starting younger when it comes to saving for retirement. On average, Albertans currently in the workforce began saving for retirement at the age of 28. In contrast, already-retired Albertans started saving at an average age of 37. That's giving the current workforce a nine-year head start on their retired counterparts.
"This research suggests that, over time, people have become more educated and more aware of the importance of saving for the future," said Chris Turchansky, President of ATB Investor Services. "One thing investors really need to be aware of, however, is how much money they'll need to retire comfortably at the age they're aiming for."
According to Investor Beat, 37 per cent of Albertans don't know how much they'll need to retire. One in five believe they'll need between $45,000 and $60,000 annually to retire in comfort.
To help them get to retirement, 56 per cent of Albertans have a registered retirement savings plan (RRSP). One-third of Albertans regularly contribute to an RRSP, while 19 per cent of those with an RRSP maximize their contribution limit every year.
Albertans' savings goals have remained consistent with past surveys, with retirement (52 per cent) maintaining the number one spot. Paying down debt, managing day-to-day finances, building an emergency fund and saving for a vacation round out the top five savings goals.
Half of Albertans said they are on track or ahead for both retirement savings and paying down debt. Among those behind in their financial goals, cost of living and unexpected expenses were the top reasons mentioned.
Of those surveyed, 15 per cent believe now is a good time to invest. That's down five per cent from three months earlier. Men in general, Calgarians and those with investible assets of over $25,000 are more likely to feel it is a good time to invest than their counterparts.
While lower energy prices continue to impact the Alberta economy, the percentage of those experiencing a slowdown in their businesses has decreased to 36 per cent from 44 per cent three months earlier. Slightly more than half of Albertans (52 per cent) said they have been affected by lower energy prices, unchanged from the previous survey.
The Investor Beat survey was conducted from October 11-20, 2016, and involved 1,003 participants. Results are considered accurate to within plus or minus 3.5 percentage points.
For the complete Investor Beat results, click here.
SOURCE ATB Financial
For further information: For more information or interview requests, please contact: Barry Strader, Corporate Reporter, ATB Financial, 780-495-1343 (office); 780-886-4398 (mobile), [email protected]