Welcome!

News Feed Item

Canadians nearing retirement don't know their pensions

One third say CPP will be their primary source of retirement income, but seven-in-ten don't know the maximum amount

WINNIPEG, Feb. 19, 2014 /CNW/ - Canadians nearing retirement (aged 55-64) are confident they have enough money to live the retirement lifestyle they desire but many do not know how much retirement income they will need nor how much their company and/or government pensions will provide.

Sixty-nine per cent of Canadians approaching retirement age were unaware of what the maximum monthly payout from government is for Canadian Pension Plan (CPP) or Quebec Pension Plan (QPP) and Old Age Security (OAS), yet more than eight-in-ten of this age group say they plan to use this as a source of retirement income, and more than one third anticipate this will be their primary source, according to new research from Investors Group.

A recent survey from Investors Group examining Canadians' knowledge of their pension plans and their retirement income revealed that while Canadians appear optimistic about their retirement lifestyle, few have a firm handle on what their cost of living will be and what their pensions will offer.

Sources of retirement income

Sixty per cent of Canadians say they plan to use an employer pension as a source of income and 37 per cent say this will be their primary source.

However, of those who say they have workplace pensions and plan to rely on it as their primary source of income, more than half (55 per cent) did not know the monthly benefit they can expect.

"Planning for retirement at an early age will help Canadians to really understand what will be required to maintain your desired lifestyle and where savings and investments are needed to fill the pension gaps," said Dave Ablett, Director, Tax and Estate Planning, at Investors Group.

Cost of living and what to expect

Seven-in-10 say that they will have enough to pay the cost of living in retirement, yet when asked what they anticipate their monthly cost of living to be, 42 per cent of unretired Canadians did not know. The research revealed that as Canadians approach the age of retirement, a significant number are still not aware of what it will take to support their lifestyle with 39 per cent of Canadians aged 55-64 were still unclear on what to expect.

"As you near the age of retirement, it is even more important to understand what your cost of living will be and to consider how that amount may fluctuate throughout your retirement years," said Investors Group's Ablett. "A financial advisor can help identify and plan for retirement needs to avoid an inadequate retirement income."

Retirement Confidence

Nearly three-quarters (72 per cent) of unretired Canadians are confident they will be able to maintain their current lifestyle in retirement. This number jumps to 91 per cent among Canadians working with a financial advisor.

While 39 per cent of Canadians say that confidence in their own money management has gone up over the last 10 years, 58 per cent say their confidence in younger generations' ability to save adequately for retirement has gone down.

In addition, (66 per cent) of Canadians are less confident in governments' ability to continue to provide an acceptable level of pension and retirement benefits.

"While the survey indicates that Canadians are approaching retirement with confidence, it also identifies the need for Canadians to gain a better understanding of what their ideal financial future looks like so they can build a plan to get there," said Dave Ablett of Investors Group.

About the Survey Methodology

Data was collected using computer assisted telephone interviewing (CATI) via the Harris/Decima teleVox omnibus. Overall, 1,010 completes were collected nationally between January 23 and January 27, 2014. The sample consists of 80% landline and 20% cell phone respondents, with quotas by gender (50/50 split) and by region. The data is weighted in tabulation to replicate actual population distribution by age and gender within region according to the 2011 Census data. This survey is considered accurate to a margin of plus or minus 3.1 per cent, 19 times out of 20. The margin of error for subgroups is higher.

About Investors Group

Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of over 4,600 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and other financial services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with over $132 billion in total assets under management as of January 31, 2014.

SOURCE Investors Group Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
As people view cloud as a preferred option to build IT systems, the size of the cloud-based system is getting bigger and more complex. As the system gets bigger, more people need to collaborate from design to management. As more people collaborate to create a bigger system, the need for a systematic approach to automate the process is required. Just as in software, cloud now needs DevOps. In this session, the audience can see how people can solve this issue with a visual model. Visual models ha...
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with lega...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
In the fast-paced advances and popularity in cloud technology, one of the most critical factors revolves around concerns for security of your critical data. How to assure both your company and your customers they can confidently trust and utilize your cloud environment is most often top on the list. There is a method to evaluating and providing security that exceeds conventional modes of protecting data both within the cloud as well externally on mobile and other devices. With the public failure...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
Microsoft Azure Container Services can be used for container deployment in a variety of ways including support for Orchestrators like Kubernetes, Docker Swarm and Mesos. However, the abstraction for app development that support application self-healing, scaling and so on may not be at the right level. Helm and Draft makes this a lot easier. In this primarily demo-driven session at @DevOpsSummit at 21st Cloud Expo, Raghavan "Rags" Srinivas, a Cloud Solutions Architect/Evangelist at Microsoft, wi...