More than half of Canada’s future retirees (55%) are comfortable that they are on track to achieve their retirement goals, on par with 2012 results (53%), according to a Scotiabank poll.
The comfort level in achieving retirement goals jumps to 75% for future retirees who say they have a written financial plan. Looking at all Canadians, 27% have a written financial plan versus 28% in 2012.
When it comes to funding for retirement, the poll revealed a downward trend in the reliance on the traditional sources of income: 55% savings (versus 60% in 2012 and 63% in 2011); 53% government (versus 57% in 2012 and 60% in 2011); 50% RRSP contributions (versus 65% in 2012 and 70% in 2011); and 47% work pension (versus 52% in both 2012 and 2011).
Relying on inheritance to fund retirement also went down to 18% from 22% in 2012, as did selling one’s home (17% versus 22% in 2012) and income from investment property (12% versus 15% in 2012).
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Similar to previous years, nearly six-in-ten (58%) future retirees expect to work after “officially” retiring from the workforce (versus 62% in 2012 and 2011). The most common reason for continues to be the desire to remain mentally active (52%), followed by financial necessity (49%).
Other survey highlights:
- Respondents say retirement means having time to enjoy life and relax (51%), or to pursue interests, goals, activities, and dreams (45%), not having to work anymore (44%), and having the freedom to do what they want (41%).
- Year over year, more of those who expect to retire are concerned about not having enough money: 72% in 2013, 68% in 2012 and 67% in 2011.
- Over the past five years, those who expect to retire have saved an average of $22,731 for retirement—an amount that has been trending downward ($24,469 in 2012 and $31,824 in 2011).
- Affordability continues to be the primary barrier to investing more (64% in 2013 and 2012 and 59% in 2011), while 20% feel they already invest enough (versus 19% in 2012 and 24% in 2011).