Annual IG Wealth Management Retirement Study: While Most Canadians 35+ May Be Saving for Retirement, Many Lack a Plan
- Almost three-quarters (72 per cent) of Canadians 35+ have started saving for retirement.
- However, nearly half (42 per cent) don’t have a retirement plan.
- Less than half (45 per cent) are confident they know how much money they will need.
Winnipeg, MB – February 15, 2024 – According to IG Wealth Management’s (IG) annual retirement study, almost three-quarters (72 per cent) of Canadians 35+ have started saving for retirement. However, many seem to be doing so without an actual retirement plan in place.
The study, conducted in partnership with Pollara Strategic Insights, found that:
- nearly half of respondents (42 per cent) are saving for retirement without a retirement plan;
- less than half (45 per cent) are confident they know how much money they will need for retirement; and
- only one-quarter (26 per cent) have considered inflation and changing economic conditions when it comes to retirement planning.
“While it’s encouraging that Canadians are making saving for retirement a priority, it’s a little concerning that so many are doing so without a proper roadmap in place nor with a sense of how much they’ll need,” said Christine Van Cauwenberghe, Head of Financial Planning at IG Wealth Management.
Ms. Van Cauwenberghe noted that a retirement plan should be a key part of any integrated financial plan and should include critical considerations such as desired retirement lifestyle, income goals, income sources, expenses, and a savings program that includes managing assets and risk.
“Retirement planning is nuanced – Canadians who adopt the do-it-yourself model are missing out on a real plan that considers all retirement income sources, how to manage debt, your legacy and tax efficiencies,” she said. “With added concerns around inflation and economic volatility on financial plans, specifically retirement, Canadians need a personalized retirement plan now more than ever to set them up for financial security in the future.”
The study also found that, among those who work with a financial advisor (36 per cent), less than half report that their advisor provides them with retirement planning support.
“Our industry has a significant opportunity – and responsibility – to think beyond just portfolio management and to focus on integrated financial planning,” added Ms. Van Cauwenberghe. “The reality is that, while saving and investing for retirement or any other major life event is important, it’s just part of the solution to achieving financial well-being. You also need to incorporate other key considerations and have them integrated into an overall action plan, which looks at all dimensions of your financial world.”
About the Pollara Study
This study was conducted with an online sample with 1,305 adult Canadians 35 years of age or older. This research was conducted from January 9th to 17th, 2024. Results from a random sample of this size can be considered accurate to within ±2.7%. 19 times out of 20.
About IG Wealth Management
Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of advisors located across Canada. IG Wealth Management has $121.9 billion in assets under advisement as of January 31, 2024, and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial, together with its subsidiaries, is one of Canada's leading diversified wealth and asset management companies with approximately $241 billion in total assets under management and advisement as of January 31, 2024.
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