Poll reveals a divide between Canadians who
are planning for retirement, and those who
aren't TORONTO, Jan. 19, 2012/CNW/ - A new CIBC
(CM: TSX; NYSE) poll conducted by Harris/Decima
shows that many Canadians across a wide range of
ages say they do not feel financially prepared
for their retirement, including baby boomers who
named retirement planning their top financial
priority for 2012. However there is cause
for optimism, as the poll also 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: - 44 per cent of all Canadians say they are
not financially prepared for their
retirement
-
Among Baby boomers at the leading edge of
the boom (aged 55-64), 31 per cent say they do
not feel financially prepared for
retirement
-
Planning ahead makes a significant
difference, according to the poll - among
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
-
Only 53 per cent of Canadians say they
have a long term investment plan for their
retirement
"Planning for retirement is something
almost every Canadian 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 Christina
Kramer, Executive Vice President, Retail
Distribution and Channel Strategy, CIBC.
"Our poll results reveal a split in the
country when it comes to retirement, with those
who are actively planning ahead are 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
While some 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 69 per cent
of all Canadians plan to continue working in
retirement in some form, meaning the traditional
retirement age of 65 that many Canadians 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 Ms. Kramer.
Even Canadians 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
Canadians 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 Ms. Kramer. "We
encourage Canadians 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
Canadians 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, Canadians
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
Quebec32%
58% Ontario
Manitoba/Saskatchewan
Alberta
British Columbia 40%
37%
46%
37% |