- Almost half of non-retired Canadians prioritize spending on
their current lifestyle rather than saving for retirement
- An overwhelming 80 per cent say the rising cost of living
makes it difficult to save for retirement
- Three-quarters believe their generation may not retire as
comfortably as current retirees
WINNIPEG, MB, Jan. 21,
2025 /CNW/ - According to IG Wealth Management's
("IG") annual retirement study, nearly half (46 per cent) of
non-retired Canadians prioritize spending on their current
lifestyle in place of saving for retirement, mainly due to paying
off debts (38 per cent) or preferring to enjoy their life now (18
per cent).
Although many have clear aspirations for their retirement
years—including travel, part-time work and consulting—rising costs,
debt and financial pressures continue to challenge their ability to
save.
The study, conducted in partnership with Pollara Strategic
Insights, found that:
- Four-fifths (80 per cent) of respondents say the rising cost of
living makes it difficult to save for retirement, while over half
(56 per cent) have put off saving due to financial pressures.
- Almost half (47 per cent) expect to retire before 65, but
one-third anticipate working later to afford basic living expenses,
supplement income, or maintain social connections.
- Despite financial pressures, two-fifths (38 per cent) of
respondents hope to prioritize travel in retirement, while 17
per cent envision working part-time or consulting, and
one-third (33 per cent) plan to focus on hobbies and
interests.
- On average, non-retired Canadians allocate 12 per cent of their
income for retirement, but spend 67 per cent on basic living
expenses and 20 per cent on leisure activities.
"Rising costs and mounting debt repayment challenges often
undermine Canadians' ability to save for retirement," said
Christine Van Cauwenberghe, Head of
Financial Planning at IG Wealth Management. "However, with our
integrated financial planning approach, we empower our clients to
strike the perfect balance – enjoying, and funding, life today,
while building a secure and confident path toward retirement."
The Value of Financial Advice
The study also revealed a concerning gap in financial advice,
with only one-third of non-retired Canadians reporting that they
work with a financial advisor. Of those who do, the majority state
that their advisor helps them balance enjoying life today while
saving for retirement (76 per cent) and personalizes advice to
match their needs (91 per cent).
These findings reinforce an important opportunity for advisors
to help close the gap in seeking professional advice, empowering
more Canadians to achieve their retirement goals.
"No two retirements are alike. With help from a financial
advisor, Canadians can build a personalized retirement plan
tailored to their unique needs to help manage today's financial
pressures with their desired retirement lifestyle," concluded Ms.
Van Cauwenberghe.
About the Pollara Study
This study was conducted in December
2024 with an online sample of 1511 Adult Canadians who are
18+ years and are not retired. Online surveys cannot be assigned a
margin of error, however, as a guideline, a probability sample of
this size carries a margin of error of ± 2.5%, 19 times out of 20.
Data has been weighted using the most current gender, age, &
region Census data, to ensure the sample reflects the actual
population of adult Canadians.
About IG Wealth Management
Founded in 1926, IG Wealth Management ("IG") is a Canadian
leader in delivering financial planning with approximately
$140 billion in assets under
advisement as of December 31, 2024.
For more than 95 years, IG has been focused on improving the
financial well-being of Canadians so they can confidently embrace
all of life's possibilities. Through a network of advisors located
across the country, IG provides approximately one million clients
with personalized advice, comprehensive financial planning,
insurance and mortgage services and professionally managed
investment solutions. IG is a member of IGM Financial Inc. (TSX:
IGM), part of the Power Corporation group of companies and one of
Canada's leading diversified
wealth and asset management organizations with approximately
$270 billion in total assets under
management and advisement as of December 31,
2024. For more information, visit ig.ca
SOURCE IG Wealth Management
