In a growing trend, on the cusp of RRSP season, yet another poll shows that Canadians, by and large do not feel prepared for retirement.
Furthermore, many do recognize the link between retirement success and developing and implementing strategy: “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.”
“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."
For Baby Boomers who feel panicky, and that time has run out in advance of their retirement, fear not. There is no time like the present, even when it comes to retirement saving and planning.
Furthermore, previous CIBC research shows that 69% of Canadians intend to keep working through retirement age, so for many there is flexibility in terms of saving deadline.
There is also benefit, no matter what stage of life you are in, to understanding what you are investing in, and how that fits into your overall planning. The temptation for many is to wait to the last minute of the RRSP deadline, which can sometimes result in rushed decisions.
“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."