Non-retired Canadians estimate they’ll need an average of $787,000 to retire comfortably, but almost half (46%) don’t have a financial plan to achieve that goal, according to a poll conducted on behalf of Royal Bank of Canada (RBC).
More than half (54%) of respondents had a financial plan in 2018, but for 32%, that plan was “in my head.”
Canadians’ estimates of the nest eggs they’ll need for retirement are significant—British Columbians estimate they’ll need $1.07 million—but only 16% are “very confident” they’ll be able to save and invest what they project they’ll need, according to the poll. Forty-five per cent are “somewhat confident” and 39% have “no confidence.”
Additionally, 66% of Canadians say they’re motivated to save because they want to be debt-free. To achieve these goals, 74% say they would spend less on non-essentials, 59% say they would eat out less, 45% say they would postpone major purchases, and 34% say they would cut back on travel.
“Debt is a huge motivator for most Canadians—they’re telling us they don’t want to live with debt now and they don’t want to retire with debt in future,” said Richa Hingorani, senior director, digital strategy at RBC, in a statement. “Identifying actions to start taking today is an important first step—and those actions can become much more effective if people put a plan in place to help them reach their goal.”