Two-thirds of Canadians (65%) either don’t have a retirement savings plan or did not make any contributions to their RSP in 2012, finds an ING DIRECT study.
When asked what concerns them most about their impending golden years, 56% admit not having enough income to sustain a good quality of life, while 13% are afraid of still having debt.
Further, 48% don’t have a retirement plan. Key reasons include: it not being a priority (24%), not feeling knowledgeable enough to create a financial plan (18%), and not having the right tools (17%).
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“While paying off debt and saving for other goals, like a child’s education, are important priorities, they’re often done at the expense of saving for retirement,” says Peter Aceto, president and CEO, ING DIRECT. “You need to strike a financial balance so that contributing to an RSP isn’t overlooked.”
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Additional findings include:
- 20% plan to retire by age 60, a number that increases to 28% when looking at Canadians ages 18 to 34;
- 26% of Canadians who did not make RSP contributions in 2012 feel concerned, stressed/anxious, hopeless or overwhelmed;
- Regular RSP contributors feel calm (29%), safe (20%) and confident (20%);
- 35% have money automatically transferred to an RSP account on a regular basis; 10% make one lump sum contribution during RSP season (January to February); 6% deposit one lump sum at some other point during the year.