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Nearly half of working age Canadians not saving for retirement

Survey respondents (20%) say money from downsizing or selling property will help pay for retirement.


OTTAWA — A report by HSBC suggests that nearly half of working-age Canadians are not saving for retirement.

The big international bank says 48% of pre-retirees in the country say they have not started or are not currently saving for their life after work.

The poll was part of a global retirement report done by HSBC.

The survey also found that one in five working-age Canadians say that money from downsizing or selling their home or a secondary property will help pay for retirement.

That was nearly twice the global average of 12% and more than the 5% of current Canadian retirees.

The poll also found that Canadian retirees were among the “happiest,” with 72% reporting they feel happy in retirement – second only to retirees in Mexico at 80%.

“While Canadian retirees rank as some of the happiest in the world, almost half of working-age people in Canada are not currently saving for retirement,” said Betty Miao, executive vice-president and head of retail banking and wealth management at HSBC Bank Canada.

“While a change of lifestyle or move to retirement living may be a great thing come retirement, it’s worth noting the wisdom shared by many of today’s retirees: start saving earlier, take good care of yourself and your health, and don’t hesitate to get advice from trusted professionals.”

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The survey also found that 53% of Canadian retirees say a government pension is helping pay for retirement, while 35% of those still working say that’s likely to be the case for them.

The federal government and all the provinces, except Quebec, recently reached an agreement in principle to help strengthen the Canada Pension Plan.

The deal, which is still being finalized, would see CPP premium increases for workers and employers, but also see Canadians receive more in retirement.

The HSBC report included the views of 18,207 working age people and retirees across 17 countries and territories around the world, including 1,037 in Canada.

The research was conducted online by IpsosMORI in September and October 2015, with additional face-to-face interviews in Egypt and the United Arab Emirates.

The polling industry’s professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.

1 Comment » for Nearly half of working age Canadians not saving for retirement
  1. Carole Rier says:

    A lot of people work for a small business and they usually don’t have a pension plan. In my 14 yrs at my present job I have had a raise totaling $7.50 which doesn’t keep us with the economy and during that time the company decided we should pay half our benefits.
    Also, a lot of parents help their children & grandchildren which my husband & I have done. Selling our house would help with retirement but unfortunately our daughters marriage failed and now her & our 3 grandsons live with us. I am 71 next month and am still working over 30 hrs a week. It is next to impossible to save for retirement with the cost of everything in the last few years. The people in government at all levels don’t realize that a lot of people don’t have great paying jobs because of the sector of the economy they work in. Also increases in car license fees etc only contribute to the cost. Property taxes go up every year.

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