Middle-class Canadians approaching retirement cliff

TORONTO—Only 26 per cent of Canadians think they are saving enough to meet their retirement needs, according to the latest Angus Reid survey.

Despite widespread knowledge about the need to save early and often for retirement, Canadians are not taking the necessary action to secure their future.

Respondents with a household income of less than $50,000 save on average seven per cent of their income towards retirement, while household incomes of $50,000-$99,000 save nine per cent.

However, 15 per cent of Canadians are not making any retirement savings.

When it comes to retirement age, the survey results show that most Canadians still hope to retire at age 65; however expectations change as people get older. Those aged 18-34 feel they will be able to retire at 63, while among those older than 55 think they will retire at 67.

The average retirement income desired by those surveyed was $59,000; 36 per cent of all polled desire an annual retirement income of $25,000-$50,000, with 31 per cent desiring $50,000-$75,000 per year. Across Canada, those in British Columbia, Alberta and Ontario were more likely to expect a higher income in retirement than those in Quebec and Atlantic Canada.

The online survey was conducted among a sample of 3,029 Canadians above the age of 18 who are employed either full or part-time and are Angus Reid Forum panel members.

Over the next 20 years more than 7 million Canadian workers will retire. Baby boomers, the 45- to 65-year-olds who account for 42% of the country’s workforce, will join the largest job exodus in Canadian history, moving to the promised land of retirement. Unless our pension system is reformed, many of these retirees will find this dreamland a bewildering and disappointing mirage.