More than half of Canadians fear outliving retirement savings
Nearly six in 10 (59%) Canadians worry they will outlive their retirement savings, according to a survey by the Canada Pension Plan Investment Board.
Impact of financial planning on confidence
Over half (52%) of non-retirees with a financial plan feel confident their money will last in retirement, making financial planning the key factor in retirement confidence.
Role of CPP income in reducing stress
- Canadians who have or expect Canada Pension Plan (CPP) income report less stress about retirement planning compared to those who do not expect CPP income (39% vs. 49%).
- Those with CPP income are also more confident their savings will last (52% vs. 44%).
Influence of financial education from close contacts
Almost half (48%) of respondents indicated that a parent, family member, friend, or teacher played an important role in their financial education. These individuals experience lower stress levels and greater confidence about retiring.
Trends in retirement anxiety and planning
- Anxiety about retirement peaks among Canadians aged 55 to 59 and then decreases post-retirement.
- More than half (55%) of non-retirees and 44% of retirees report not having a retirement plan, with little change from the previous year.
"Planning is the top driver of retirement confidence." — Canada Pension Plan Investment Board survey
Author's summary: The fear of outliving retirement savings affects most Canadians, but those with financial plans, CPP income, and proper financial education feel more confident and less stressed about their retirement preparedness.