Poll reveals a divide between Canadians who are planning for retirement, and those who aren't
TORONTO, Jan. 19, 2012 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) poll conducted by Harris/Decima shows that many Ontarians across a wide range of ages say they do not feel financially prepared for their retirement. This trend was also prevalent nationally, including among Canadian baby boomers despite having named retirement planning their top financial priority for 2012. However there is cause for optimism, as the poll reveals Canadians who are actively planning for their retirement are much more likely to feel financially prepared to take that step versus those without a plan.
Key findings of the poll include:
- 40 per cent of Ontarians say they are not financially prepared for their retirement
- Only 53 per cent of Ontario residents say they have a long term investment plan for their retirement
- Planning ahead makes a significant difference, according to the poll - among all Canadians who say they have a long term investment plan for retirement, 76 per cent say they are financially prepared for retirement, versus just 25 per cent among those who don't have a plan
"Planning for retirement is something almost every Ontarian thinks about at this time of year, and our poll results show that many would like to be further ahead when it comes to their retirement plans," commented Larry Tomei, Senior Vice President, Central Region, CIBC. "Our poll results reveal a split among all Canadians when it comes to retirement, with those who are actively planning ahead about three times more likely to feel prepared for their future retirement than those who have not yet mapped out their retirement strategy."
Canadians aged 45-64 named retirement planning their top priority for 2012 in a CIBC poll released in early January, yet many in this age group feel they have work to do on their retirement plans:
- Among 25-34 year old Canadians, 47 per cent say they are not financially prepared for their retirement
- Among 35-44 year old Canadians, 49 per cent say they are not financially prepared for their retirement
- Among 45-54 year old Canadians, 47 per cent say they are not financially prepared for their retirement
- Among 55-64 year old Canadians, 31 per cent say they are not financially prepared for their retirement
Among all Canadian baby boomers at the leading edge of the boom (aged 55-64), 31 per cent say they do not feel financially prepared for retirement. While some Ontario baby boomers without a plan in place may feel time is running out to establish a long term investment plan for retirement, previous CIBC research indicates that 70 per cent of Ontarians plan to continue working in retirement in some form, meaning the traditional retirement age of 65 that many Ontario residents use as a deadline for their savings plans may be somewhat flexible.
"Regardless of what stage of life you're currently in, you can benefit from having a discussion with a financial advisor who can help you establish a plan that works to meet your goals. The key is to take action today and not wait for another year to go by," said Mr. Tomei.
Even Ontarians with an existing long term investment plan can benefit from reviewing their plan to ensure it continues to meet their needs. Planning for retirement also includes having a debt repayment strategy, and knowing how much you should be saving each year to meet your long term goals.
"We're all busy, and some Ontario residents have fallen into the habit of making their RRSP contribution just before the deadline without taking the time to sit down and understand where they are versus their goals, and what they might need to change to keep making progress," added Mr. Tomei. "We encourage Ontarians to make this the year you use the time before the contribution deadline to look at your broader financial picture, particularly given the difference we see it making in the confidence people have in their retirement plans."
CIBC offered the following tips for Ontario residents looking to make further progress towards their retirement goals:
Meet with an Advisor and Build or Review your Retirement Strategy: An advisor can help you determine the income you need in retirement. An advisor can also help to identify opportunities to build savings and structure a repayment plan that allows for debt reduction, both key elements of a long term retirement strategy.
Contribute regularly: Making regular contributions to your retirement plan is often easier than coming up with on lump sum before the RRSP contribution deadline. Start making regular contributions now so that next year, you won't need to come up with a lump sum contribution.
Manage and Track Day to Day Spending: Managing cash flow effectively is a key element in both retirement savings and in making the most of your retirement income. Keeping track of spending can be accomplished through simple pen and paper budgeting, or using new tools such as CIBC Mobile Banking to keep on top your account, or CIBC CreditSmart to stay on budget with your credit card spending.
Prepare for the Unexpected: Whether you plan to continue working in retirement or dream of spending time in a tropical climate, Ontarians should be prepared for unexpected life events when building their plan. Meeting with an advisor on an annual basis will ensure you are on track to meet your particular goals, and can help you plan for potential obstacles.
KEY POLL FINDINGS
Percentage of Canadians who do not feel financially prepared for their retirement, by region:
National Average 44%
Atlantic Canada 32%
British Columbia 37%
Percentage of Canadians who have a long term investment plan in place for retirement, by age:
National Average 53%
65 and over 57%
Percentage of Canadians who have a long term investment plan in place for retirement, by region:
National Average 53%
Atlantic Canada 49%
British Columbia 64%
Results are based on a CIBC poll conducted by Harris/Decima, via teleVox, which surveyed 1,005 Canadians. The associated margin of error is +/-3.1%, 19 times out of 20. Polling was conducted between December 8th to 12th, 2011. The margin of error for the 326 Ontarians surveyed is +/-5.4%, 19 times out of 20.
CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com.
For further information:
Kevin Dove, Head of External Communications, 416-980-8835, [email protected]