When granted lump sums, such as tax refunds, most people opt to pay off debt, says new data from Edward Jones.
So, even though most working Canadians are worried about having to delay retirement to supplement their savings, says the poll, nearly one-in-three are focusing first on household debt. In fact, fewer than 10% planned to use their tax refunds for saving for retirement.
Still, when people were asked to name their biggest financial fear in a previous survey by Edward Jones, 34% cited having to work longer than expected to save enough. That compares to 28% in 2010, and 23% in 2006.
Part of the reason for the uptick is the majority of Canadians polled (70%) haven’t properly calculated what they’ll need for retirement. For example, 38% of those between the ages of 25 and 34 already expect to work longer than normal, despite the fact that they have many years to plan and save.