Canadian Credit Union Association

Concern about retirement savings

Boomers worry about savings

Canadian Boomers aged 50 years plus who are not yet retired worry that they haven’t saved enough money for retirement, according to a recently released RBC survey. This poll, conducted in April 2019, confirms results reported in a number of other recent research surveys including the low household savings rate reported by Statistics Canada and reflected in a financial independence survey by RBC (see the January 22nd issue of CI Update), lack of financial planning and savings reported in a Franklin Templeton survey as well as an Angus Reid survey (see the May 21st issue of CI Update), and concern about retirees running out of savings noted in FP Canada and World Economic Forum studies (see the June 18th issue CI Update.

This latest RBC poll found the retirement savings targets pre-retired Boomers are trying to achieve vary significantly for those with investable assets over and under $100,000. On average, those with over $100,000 invested are aiming to save $974,000 and have achieved about 71 per cent of their target or $674,000. Canadians aged 50 and up with less than $100,000 in investable assets are much farther from their average goal of $574,000, with the average savings more than $500,000 off this target.

The remainder of the results reported focus on those Canadians with over $100,000 in investable assets, hinting at the bank’s target market.