More than half of Canadians feel unprepared for retirement
MISSISSAUGA, ON, Feb. 24, 2014 /CNW/ - While many Canadians may enjoy watching the Oscars on March 2, a majority will not be able to live anything close to a movie-star lifestyle when they retire. A new poll commissioned by Edward Jones found that more than half of Canadians do not feel confident about their current savings levels.
The poll completed by Leger Marketing asked Canadians which Oscar-nominated movie title most closely resembled their retirement savings. The results found that the majority are saving for retirement but only 30 per cent will be able to retire comfortably.
- 8 per cent - Million Dollar Baby - I'm set for retirement
- 22 per cent - Bound for Glory - I'm on my way to retiring comfortably
- 33 per cent - As Good as It Gets - I'm saving as much as I can, but it will not be enough to retire
- 20 per cent - Gone with the Wind - I'm not saving for retirement
- 17 per cent - Don't know
"With various expenditures vying for our attention, it can be challenging to factor in retirement savings. The simple solution is that Canadians need to get in the habit of paying themselves first," says Patrick French, Director, Financial and Retirement Planning with Edward Jones. "Implementing a pre-authorized contribution (PAC) plan allows individuals to treat savings like any other bill, having funds automatically flow out of their bank account and into a registered retirement savings account. It's the first step to achieving long-term financial success, and the earlier you start the better."
No matter what age - Canadians not prepared
When it comes to saving, Canadians are not prepared for retirement. Canadians 18-34 are the most likely not to be saving for retirement (31 per cent), however, only 15 per cent of those over 55 are set for retirement. Two-fifths of those aged 35 to 54 are saving but not enough to retire.
Mr. French recommends the following tips to ensure a financially secure retirement:
- Identify retirement goals. Dining out like a movie star or dinner at home? Decide what type of lifestyle you want to live and build a financial strategy that will meet your goals.
- Start early. It is never too late to start saving for retirement. But the earlier you start the better the opportunity you have to retire how and when you want.
- Use retirement savings opportunities. A Registered Retirement Savings Plan (RRSP) is one of the best ways to save for retirement. Money contributed to an RRSP grows tax-deferred, so over the long-term it provides the opportunity to accumulate much more wealth and contributions can result in a generous tax break.
- Invest your tax return in your RRSP. By paying your tax return forward and investing it in your RRSPs when you receive your return, you have already given yourself a head start for a tax break next year and hopefully another return.
Work with an advisor to create a financial strategy designed to make your retirement as comfortable as you want.
Data in this news release was gathered via an online survey of a representative sample of 1,503 Canadians between January 27 and January 30, 2014. A probability sample of the same size would yield a margin of error of +/- 2.5 per cent, 19 times out of 20.
About Edward Jones
Edward Jones is a full-service investment dealer with one of the largest branch networks in Canada. It is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund, and a participating organization of the Toronto Stock Exchange. Including its affiliate, Edward Jones serves nearly 7 million individual investors in Canada and the U.S. from more than 11,000 locations.
Edward Jones is a limited partnership in Canada and is a wholly owned subsidiary of Edward D. Jones & Co., LP, a Missouri limited partnership. Edward D. Jones & Co., LP is a wholly owned subsidiary of The Jones Financial Companies, LLLP, a Missouri limited liability limited partnership.
SOURCE: Edward Jones
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