With the cost of living and economic uncertainty weighing heavy, Canadians are growing concerned about meeting their financial goals, including the timing of their planned retirement, according to a new survey.
Four in 10 (43 per cent) Canadians said in a survey commissioned by the TD Bank Group and published Tuesday that they are “not confident” that they will be able to retire when initially planned.
A majority (71 per cent) of the survey respondents also said that the high cost of living and inflation has made it increasingly challenging to meet their financial goals over the past year.
“Canada’s current economic climate continues to impact how Canadians approach their finances and investments, and that’s why it’s more important than ever to seek trusted advice,” said Pat Giles, vice-president of saving and investing journey at TD, in a statement.
“In challenging economic conditions, the right financial support can make a significant difference, especially when balancing competing saving and spending priorities.”
The online survey was conducted by Maru Public Opinion from Oct. 23 to 24 and included 1,524 randomly selected Canadian adults.
It comes days after a Deloitte Canada analysis last week said that 55 per cent of Canadians aged between 55 and 64 years will have to make changes to their lifestyles to avoid eating up all their savings during retirement.
According to the report published on Nov. 29, only 14 per cent of near-retirees can expect to have a comfortable retirement. These are individuals who have at least $900,000 in financial assets and are likely to own a house, according to the report.
Sticky inflation and interest rate hikes this past year have been top of mind for Canadians of all ages.
Canada’s overall inflation rate cooled sharply to 3.1 per cent nationally in October according to Statistics Canada, offering some relief for consumers.
Since March 2022, the Bank of Canada has hiked its interest rate 10 times but has held it steady in the last two decisions. The central bank will make its final decision of the year Wednesday.
The TD survey showed almost half of Canadians (47 per cent) have either not made or are not planning to make any contributions to their investments, like the Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA), this past year. Among those who haven’t, 46 per cent say this was because of the high cost of living.
Most Canadians (54 per cent) have also not set up a personalized plan that could help them meet their financial goals, the survey showed.
Giles said there is “no ‘one-size-fits-all’ approach,” whether you’re planning for retirement or for working towards a short-term goal.
“It’s a myth that you need to have a certain dollar figure to start prioritizing your financial future. No amount is too small to start saving or investing.”
— with files from Global News’ Craig Lord