Canadian workers feel their financial situation has improved in the last two years, but financial security is still a top concern, according to ta new survey new survey by global professional services company Towers Watson.
The survey found that half of the respondents under the age of 50 are worried about their current and future financial state.
“The survey results suggest there are multiple sources contributing to this financial anxiety. Among them is the lack of confidence in financial support from public benefits. Less than one-third of the survey respondents believe that Old Age Security and the Canada/Quebec Pension Plans will continue to provide the same level of benefits in the future as they do today, and more than 70% of respondents believe we will see diminished coverage under provincial health care benefits,” said Karen Burnett, a senior Towers Watson retirement consultant.
Canadian workers also continue to struggle with the corporate cut-backs of the past five years. According to the survey, 76% of Canadian workers have endured cuts in salary increases and benefits, or have lived through significant organizational change.
The survey results show that Canadians are tackling their concerns about financial security head-on — by deferring expenditures, paying down debt and living more modest lifestyles. They are also saving more for retirement. In fact, close to two-thirds of survey respondents 40 or older rank saving for retirement as their number one priority.
While saving for retirement may be the top financial priority for Canadians, the survey results demonstrate that many are not saving enough. According to the survey, three-quarters of Canadians are saving below their ideal target and only half of the survey respondents believe they will be able to improve their financial prospects. For many Canadians, this means a delayed retirement.
According to Dan Morrison, a leader of Towers Watson’s defined contribution consulting group, “the survey shows that many employees anticipate longer careers and will delay their retirement by 3 or more years.”
The Towers Watson’s Global Benefits Attitudes Survey examines employees’ attitudes toward their health and retirement benefits. Conducted in 12 countries between July and September 2013, the survey was completed by 22,347 employees including 1,708 full-time Canadian workers, representing all job levels and major industry sectors. The margin of error for the total sample is plus or minus 2.4%.