Majority of retirees enjoy their lifestyle

RRSP Nest EggWell it’s RRSP season which means it’s RRSP doom and gloom season. Every time I check my inbox there are press releases with headlines like New study reveals Canadians’ retirement perspectives and plans – Sixty percent of Canadians not ready to comfortably retire or Most Canadians will fall short on RRSP contributions this year:

That’s why I was pleasantly surprised to see a media report that  says Retired life going exactly as planned for most Canadians.. According to a new survey by Tangerine Bank, 90% of retired Canadians say they were able to retire at the age they planned, and 77% are now living the retirement lifestyle they envisioned. However, younger Canadians do not believe they will be able to retire as early as their parents.

While more than two-thirds (69%) of current retirees finished their careers between the ages of 55-64, only 39% of Canadians working today believe they will be able to retire in that time frame. In addition, almost 1 in 5 (18%) expect to work well into their seventies, and only 53% of working Canadians surveyed believe they will be able to live the retired life they envision for themselves.

“The good news is that today’s retirees show us that it is well within our reach to retire comfortably and on time. We just need to remain diligent in following through on our savings and investment goals to achieve the  lifestyle we desire. retirement,” said Silvio Stroescu, Managing Director of Deposits and Investments at Tangerine.

When asked what retirement advice they would give young Canadians today, almost three-quarters (73 %) of retirees said their advice would be to “make saving/investing for retirement a part of your budget.”

Despite many seniors living the retirement lifestyle they envisioned for themselves, it seems you can never begin too early, Fifty-seven percent now say they wish they started saving for retirement sooner. Of the retirees who believe they should have put money away earlier, two-thirds (66%) wish they started saving for retirement in their 20s.

The reason? Almost half (45 %) of retirees say the cost of living is much higher today than they ever expected, with 34% saying they didn’t realize just how much money was needed for retirement.

In another study conducted by HSBC the majority of Canadians revealed that they have emerged from the recent economic downturn in better shape than their fellow savers around the world when it comes to retirement plans. The global poll  found that only 18% of Canadians feel the 2008-2009 recession had a “direct and significant impact” on their ability to save for retirement, the lowest of all markets tested and well below the international average of 26%.











  1. Obviously, if the preoccupation of Canadians is that they will not have enough to retire on in old age, anything that can increase the size of the retirement savings in a tax-efficient manner should not be overlooked. Do you have any suggestions Sheryl?

  2. Thanks for commenting Jean-Pierre. As you know, Canadians have many options for saving on a tax-assisted basis including company pension plans, group RRSPs, RRSPs, TFSAs and in some cases, Individual Pension Plans. Lack of tax-assisted savings room is typically not the issue. Rather, lack of discipline to spend less than they earn and contribute to retirement savings plans early and often ultimately limits the money available for retirement.

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