MONTREAL—A new survey suggests many Canadians are pessimistic about their financial futures and expect to work longer than originally planned before retiring.
According to the survey, released by the Canadian Payroll Association, three-quarters of working Canadians polled reported having put aside less than 25 percent of the money they expect to need in retirement.
And it says less than half of people even 50 and older have reached that threshold.
The survey, the association’s seventh annual to mark National Payroll Week, also found that 35 percent of respondents expect to work longer.
According to the survey, the average expected retirement age has risen to 63, up from 58 five years ago.
More than one in five employees surveyed said they will need to work four years or more than they originally expected before retiring, citing a lack of sufficient savings as the main reason.
“They are not sounding very promising of what (their) future is going to look like,” said association vice-chairwoman Lucy Zambon.
She said the outlook depends on individual circumstances but saving for the future is a key factor that can be helped by automatic deductions from paycheques to a savings plan or retirement program.
Although about half of workers expect to need more than $1 million for retirement, 47 percent are putting away just five percent or less of their net pay. That’s well below the 10 percent minimum savings rate recommended by financial planning experts, the association said.
