Canadians Retirement Savings Inadequate

Posted on October 24, 2007 at 11:48 am
Filed Under Financial Planning, Investment Planning, Retirement Planning

An article published in Report on Business states that Canadians retirement savings are not adequate.

According to Fidelity and most investment firms and Advisor’s, the average Canadian will need approximatley 70 to 80% of their current income to live the life they want during their retirement years. Sadly, the reality is that a Fidelity based “survey of 2,200 people aged 25 and older says that Canadians on average have saved enough to generate only 50% in retirement income”. Keep in mind that this retirement income goal is not a one size fits all formula, but our experience tells us that it definitely represents an accurate need for the majority of Canadians.

Your Take-Away: We have all heard the saying “If you fail to plan, you plan to fail”, and I think the above statistics are a clear indication of exactly that. Knowing what your retirement needs actually are is the first step towards ensuring that you have the retirement savings you need to provide the income you want. An “RRSP Calculator” can be found on many sites, including our own, and it would be wise to at least determine for yourself if you are on track. If not, something as simple as a monthly investment plan can be the answer you are looking for to make sure you end up where you want to be.

In the words of the now famous David Bach, “Anyone can become an Automatic Millionaire”.

Happy Planning.

Chris

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