Two-thirds of Canadians are worried about their financial wellbeing during retirement and many admit to not even having an RSP, according to a new survey from online bank ING Direct.
When asked what concerns them most about their impending golden years, 56% admit not having enough income to sustain a good quality of life, while 13% are afraid of still having debt.
The study found that, despite their concern, nearly half of Canadians (48%) don’t have a financial plan in place. Key reasons for not having a retirement plan include: it not being a priority (24%), not feeling knowledgeable enough to create a financial plan (18%) and not having the right tools to create a plan (17%).
While Canadians appear eager to retire early — 20% of those polled say they plan to retire by age 60, a number that increases to 28% when looking at Canadians ages 18 to 34 — few have the financial habits to support their early retirement dreams. An alarming 65% of Canadians say they either don’t have a retirement savings plan or did not make any contributions to their RSP in 2012.
In addition to the financial implications of neglecting retirement savings, Canadians admit it’s also taking a toll on their emotional health. More than a quarter (26%) of Canadians who did not make RSP contributions in 2012 described themselves as feeling concerned, stressed/anxious, hopeless or overwhelmed about it.
Saving regularly yields confidence
Canadians who made RSP contributions in 2012 are decidedly more positive about their saving habits. When asked to sum up how they feel about saving during RSP season, these regular contributors described themselves as feeling calm (29%), safe (20%) and confident (20%).
One key to their positivity and savings success might be in regular, automatic savings habits. Over a third (35%) of Canadians who plan to retire and have an RSP say they have money automatically transferred to an RSP account on a regular basis. One in 10 say they make one lump sum to their RSP accounts during RSP season (January – February) while 6% deposit one lump sum at some other point during the year.
The ING Direct poll results came from an online survey conducted on Dec. 14, 2012 among a sample of 1,008 Canadian adults who are Angus Reid Forum panel members.