Welcome!

News Feed Item

Scotiabank Asks: Are You on Track to Achieve Your Retirement Goals?

Study Reveals Canadians Will Rely on a Variety of Sources to Fund Their Retirement

TORONTO, ON--(Marketwired - February 06, 2014) - According to Scotiabank's Annual Investment Poll, just over half of Canada's future retirees (55%) are comfortable that they are on track to achieve their retirement goals, on par with 2012 results (53%). The comfort level in achieving retirement goals jumps to 75% for those future retirees who say they have a written financial plan. Looking at all Canadians, just under 3-in-10 (27%) have a written financial plan versus 28% in 2012.

When it comes to funding for retirement, the poll revealed a downward trend in the reliance on the traditional sources of income: 55% savings (versus 60% in 2012 and 63% in 2011); 53% government (versus 57% in 2012 and 60% in 2011); 50% RSP contributions (versus 65% in 2012 and 70% in 2011); and 47% work pension (versus 52% in both 2012 and 2011). Relying on inheritance to fund retirement also went down to 18% from 22% in 2012, as did selling one's home (17% versus 22% in 2012) and income from investment property (12% versus 15% in 2012).

Similar to previous years, nearly six-in-ten (58%) future retirees expect to work after "officially" retiring from the workforce (versus 62% in 2012 and 2011). The most common given reason for working after retirement continues to be the desire to remain mentally active (52%), followed by financial necessity (49%). 

Additional facts:

  • For Canadians, retirement means having time to enjoy life and relax (51%), or to pursue interests, goals, activities, and dreams (45%), not having to work anymore (44%), and having the freedom to do what they want (41%).
  • Year over year more Canadians who are expecting to retire are concerned about not having enough money to support their retirement, 72% in 2013, 68% in 2012 and 67% in 2011.
  • Over the past five years, Canadians who expect to retire in the future have saved an average of $22,731 for retirement -- an amount that has been trending downward ($24,469 in 2012 and $31,824 in 2011).
  • Affordability continues to be the primary barrier Canadians face towards investing more (64% in 2013 and 2012 and 59% in 2011), while 20% feel they already invest enough (versus 19% in 2012 and 24% in 2011).

Quotes:

"It's no surprise that for most of us, retirement means being able to enjoy life and have the time and the freedom to do what matters most, so it is concerning to see continued challenges with affordability of saving and a downward trend in the actual amount saved," says Mike Henry, Senior Vice President of Retail Payments, Deposits and Lending at Scotiabank. "What's also clear is that of those who feel they are on track to meet their financial goals, the majority have a written financial plan. We encourage the 73 per cent of Canadians who do not have a written financial plan to meet with an advisor who can help them create a personalized plan and identify opportunities to help them get ahead financially, especially with their retirement savings."

"Canadians of every age are faced with difficult choices when it comes to allocating their cash flow," says Mike Newton, ScotiaMcLeod Director, Wealth Management. "Market volatility, employment numbers and concerns with debt tethered to the possibility of rising interest rates are impacting attitudes and behaviors. In thinking about retirement, investors need to work with a financial advisor to assist them in crafting a plan that can help capture their individual needs, concerns, and goals. This can result in a dependable and consistent approach in investment management and cash management, as well as in banking, lending, liquidity, estate planning and overall wealth structuring."

About the polling data
This study was conducted online for the third consecutive year using Harris/Decima's online panel. A total of 1,029 completed surveys were collected from a random sample of panel members across Canada. The study was conducted from November 12, 2013 to November 27, 2013.

About Scotiabank
Scotiabank is a leading financial services provider in over 55 countries and Canada's most international bank. Through our team of more than 83,000 employees, Scotiabank and its affiliates offer a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking to over 21 million customers. With assets of $744 billion (as at October 31, 2013), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). Scotiabank distributes the Bank's media releases using Marketwired. For more information please visit www.scotiabank.com.

BACKGROUND

REGIONAL BREAKOUTS

                       ACHIEVING OF RETIREMENT GOALS                        
                                                                            
----------------------------------------------------------------------------
                        Total   Atlantic Quebec Ontario Man/Sask Alberta BC 
----------------------------------------------------------------------------
Comfortable that on   2013: 55%                                             
 track to achieve     2012: 53%   58%     56%     58%     53%      60%   43%
 retirement goals     2011: 58%                                             
----------------------------------------------------------------------------
                                                                            
                                                                            
                      FUNDING FOR THE IDEAL RETIREMENT                      
                                                                            
----------------------------------------------------------------------------
                        Total   Atlantic Quebec Ontario Man/Sask Alberta BC 
----------------------------------------------------------------------------
Where money will come                                                       
 from                                                                       
----------------------------------------------------------------------------
                      2013: 55%                                             
              Savings 2012: 60%   58%     48%     57%     60%      61%   55%
                      2011: 63%                                             
----------------------------------------------------------------------------
                      2013: 53%                                             
           Government 2012: 57%   58%     49%     54%     57%      52%   51%
                      2011: 60%                                             
----------------------------------------------------------------------------
                      2013: 50%                                             
    RSP contributions 2012: 65%   42%     54%     51%     60%      53%   38%
                      2011: 70%                                             
----------------------------------------------------------------------------
                      2013: 47%                                             
         Work Pension 2012: 52%   56%     48%     43%     65%      51%   40%
                      2011: 52%                                             
----------------------------------------------------------------------------
                      2013: 18%                                             
          Inheritance 2012: 22%   10%     22%     16%     14%      24%   16%
                      2011: 22%                                             
----------------------------------------------------------------------------
                      2013: 17%                                             
            Sell home 2012: 22%   11%     15%     22%     12%      18%   16%
                        2011*                                               
----------------------------------------------------------------------------
                      2013: 12%                                             
          Income from 2012: 15%    9%      8%     12%     12%      21%   15%
  investment property   2011*                                               
----------------------------------------------------------------------------

* Response list changed in 2012.

                                                                            
                                                                            
                          WORKING AFTER RETIREMENT                          
                                                                            
----------------------------------------------------------------------------
                        Total   Atlantic Quebec Ontario Man/Sask Alberta BC 
----------------------------------------------------------------------------
Expect to work after                                                        
 officially retiring                                                        
----------------------------------------------------------------------------
                  Yes 2013: 58%                                             
                      2012: 62%   53%     48%     64%     60%      51%   67%
                      2011: 62%                                             
----------------------------------------------------------------------------
Reason for working                                                          
 after retirement                                                           
----------------------------------------------------------------------------
     Desire to remain 2013: 52%                                             
      mentally active 2012: 65%   50%     49%     56%     51%      43%   51%
                      2011: 64%                                             
----------------------------------------------------------------------------
  Financial necessity 2013: 49%                                             
                      2012: 48%   40%     45%     49%     54%      44%   64%
                      2011: 46%                                             
----------------------------------------------------------------------------
                                                                            
                                                                            
                           SAVING FOR RETIREMENT                            
                                                                            
----------------------------------------------------------------------------
                 Total     Atlantic Quebec  Ontario Man/Sask Alberta   BC   
----------------------------------------------------------------------------
Concerned                                                                   
 about not                                                                  
 having                                                                     
 enough        2013: 72%                                                    
 money to      2012: 68%     74%      63%     74%     70%      69%     83%  
 support       2011: 67%                                                    
 their                                                                      
 retirement                                                                 
----------------------------------------------------------------------------
Currently      2013: 60%                                                    
 saving for    2012: 67%     66%      59%     60%     62%      70%     50%  
 retirement    2011: 68%                                                    
----------------------------------------------------------------------------
Average                                                                     
 savings     2013: $22,731                                                  
 over past 5 2012: $24,469 $14,760  $18,662 $26,210 $19,240  $28,592 $24,106
 years       2011: $31,824                                                  
----------------------------------------------------------------------------
                                                                            
                                                                            
                       REASONS FOR NOT INVESTING MORE                       
                                                                            
----------------------------------------------------------------------------
                        Total   Atlantic Quebec Ontario Man/Sask Alberta BC 
----------------------------------------------------------------------------
                      2013: 64%                                             
Can't afford it       2012: 64%   66%     61%     65%     73%      56%   65%
                      2011: 59%                                             
----------------------------------------------------------------------------
                      2013: 20%                                             
Already invest enough 2012: 19%   20%     20%     19%     19%      29%   18%
                      2011: 24%                                             
----------------------------------------------------------------------------
                                                                            
                                                                            
                           WRITTEN FINANCIAL PLAN                           
                                                                            
----------------------------------------------------------------------------
                        Total   Atlantic Quebec Ontario Man/Sask Alberta BC 
----------------------------------------------------------------------------
Has written financial 2013: 27%                                             
 plan                 2012: 28%   14%     26%     30%     32%      26%   26%
                      2011: 32%                                             
----------------------------------------------------------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...