IG Wealth Management Retirement Myth Busting Study: Majority of Canadians Still Believe $1 Million in Savings is Enough to Retire
- Two-thirds of Canadians believe $1 million in savings is enough to fund their retirement
- Two-thirds are also concerned about the impact a recession in 2023 will have on their ability to achieve their dream retirement
- Nearly half think they will be able to retire comfortably just by focussing on investing in an RRSP
Winnipeg, MB – February 1, 2023: IG Wealth Management (IG) today released a study on Canadians’ beliefs about retirement planning. According to the study, conducted in partnership with Pollara Strategic Insights, retirement planning myths and misconceptions continue to persist. This includes the view, shared by two-thirds (63 per cent), that $1 million in savings is enough to retire comfortably.
“It’s surprising that so many Canadians believe $1 million in savings is enough for retirement, considering many don’t know what their cost of living will be once retired,” said Christine Van Cauwenberghe, Head of Financial Planning, IG Wealth Management. “Generally speaking, the amount one needs to retire comfortably will depend on a variety of factors.”
Ms. Van Cauwenberghe continued, “Unfortunately, people are often misguided by outdated information and may not be getting the full retirement planning help they deserve. With lifestyle expenses and the added concerns surrounding the impact of inflation on financial plans, particularly retirement, Canadians need an individualized retirement plan to determine the number that will meet their unique needs.”
Other key findings from the study included:
- Two-thirds are concerned about the impact of a possible recession in 2023 on their financial situation and expect their cost of living will be higher in retirement than their current cost of living.
- One-third (33 per cent) do not know what percentage of their current income they would need to cover expenses in retirement.
Myth Busting: Are RRSPs Enough?
Investing in an RRSP is an important vehicle to save for retirement, but nearly half (44 per cent) of Canadians believe they can retire comfortably so long as they have enough saved through this one program.
“It’s important to start saving for retirement as soon as possible and that means investing in an RRSP- but that’s just one piece of the retirement planning puzzle,” said Ms. Van Cauwenberghe. “A certified financial planner can help you map out what your retirement is going to look like, while also highlighting other key components for consideration, including any incurred debt, tax and estate planning, insurance needs or budgeting. Further, they can also provide insight on how to incorporate TFSAs, real estate and insurance into the investment mix.”
“Financial advisors take a holistic approach to retirement planning to determine all sources of income to help clients feel financially secure and confident as they plan for their golden years. My experience is that, in general, those who work with a financial advisor to prepare for their retirement are more likely to be able to reach their retirement goals,” concluded Ms. Van Cauwenberghe.
About the Pollara Study
This study was conducted with an online sample of 1507 Canadians aged 18 years or above who are not retired and was conducted between January 4, 2023 and January 10, 2023. Results of the study were weighted by region and gender to be representative of the population as a whole. The margin of error on a probability sample of this size would be +/- 2.5%, 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. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has $110.8 billion in assets under advisement as of December 31, 2022, and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's leading diversified wealth and asset management companies with approximately $249 billion in total assets under management and advisement as of December 31, 2022.
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