Most Canadians are confident they’ll be able to fund their retirement, says a CIBC poll.
However, some current retirees are concerned they won’t be able to sustain their lifestyle over the long-term.
Read: Phased retirement: A choice or necessity?
The poll finds more than half (69%) are living the retirement they hoped for, but also that 28% fear running out of money.
Regionally, those in Quebec, Manitoba and Saskatchewan (74%) are most likely to say they’re happy with their retirement, while those in B.C. (60%) are least likely.
Clients have to remember, says CIBC, that planning out how they’ll covert savings into income is just as crucial as ensuring they save enough in the first place.
Read: 3 retirement tips from retirees
The poll finds only 62% of retirees have determined how much they can withdraw each year to support their lifestyle. There was also an even split in how they developed their plans, with 31% having a plan with an advisor and an equal number having developed a plan on their own.
While the concerns of today’s retirees were primarily focused on the long term, the poll shows more than half of retired Canadians indicate a short-term financial shock could create a challenge in managing cash flow.
Read: Half of Canadians don’t have emergency savings
Given their current income and cash flow, 54% say taking on a new $500 monthly payment would be unmanageable. This suggests some retired Canadians may not be financially prepared to pay for costs associated with emergencies.
“You may have to reevaluate how much you’re able to withdraw each year to ensure you have [funds set aside] in the event of an emergency,” says Christina Kramer, executive vice president, retail distribution and channel strategy, CIBC
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