More than half of Canadians fear they haven’t saved enough for retirement, finds a study by HSBC. Further, 23% aren’t saving at all and 32% say they’re not saving enough.
What’s more, 34% believe their retirement income will come from the state, and for 47% the state pension will be an important source of retirement income.
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HSBC states given that Canadians want a retirement income that replaces four-fifths (81%) of a comfortable working life income, there is an overreliance on state benefits.
There are, of course, many obstacles to saving, including the lack of a regular savings habit and the financial impact of unexpected life events.
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“However this is creating a ticking time-bomb, where the hidden impact of their lack of saving will only become clear to them years later, when they retire without the income to enjoy their retirement,” notes Simon Williams, group head of Wealth Management, HSBC.
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The survey also finds employer-led initiatives are an important incentive to retirement saving: 27% started planning financially for retirement after their employer paid into a pension for them, although a more important motivator is the desire to achieve a good standard of living in retirement (45%).