TORONTO—Canadians are overwhelmingly worried about saving for retirement, yet according to a new CIBC poll, only slightly more than half are expecting to be able to do so this year.
With the Feb. 29 RRSP contribution deadline for the 2015 tax year looming, just 37 per cent of Canadians are planning to make fresh contributions to their retirement plans this year. Though another 17 per cent of Canadians are planning to invest in Tax-Free Savings Accounts or other investment vehicles, this still leaves nearly half the population with insufficient funds to put away any money for retirement this year.
“Many diligent Canadians are setting aside money for retirement but there are others who worry they aren’t saving enough and those who aren’t able to save at all because they are trying to stay on top of debt and manage day-to-day living costs,” Christina Kramer, executive vice-president of Retail and Business Banking at CIBC, said.
While Canadians of all ages are worried about saving, 35 to 54 year-olds are the most concerned, with 86 per cent of respondents seeing retirement as a major concern. In comparison, 62 per cent of baby boomers—those over 55 years-old—are worried about saving, while 77 per cent of Millenials—from 18 to 34—see retirement saving as a red flag.
Despite the desire to save, competing financial demands, such as paying down debt, home renovations or buying a home weighs on Canadians’ ability to lock money into long-term investments.
“It’s ironic, but for some Canadians, life is getting in the way of saving for retirement,” Kramer said.