An increased number of Canadians in all stages of their careers feel they are on track to meet their retirement goals, according to an investment poll by Toronto-based Bank of Nova Scotia.
The firm’s most recent survey indicates that 62% of Canadian future retirees believe they will meet their retirement goals, a jump of 7% from the number of Canadians who felt the same in 2013. The highest increase was found in Canadians who are 55 years old and older, with 77% believing this to be the case compared to 63% in 2013.
The survey also found that fewer of these future retirees are concerned about having enough money to retire, with 69% saying they worry about this compared to 72% in 2013. The number of future retirees who indicate they would have to rely on children or other relatives for financial help is also down, from 43% in 2013 to 37% in the current results.
The bank notes that Canadians have more options to save for retirement as a result of the change that was made to tax-free savings accounts (TFSA) in April’s federal budget.
“The federal government’s announcement that they have increased the annual contribution limit of the [TFSA] to $10,000 effective immediately enables Canadians to take advantage of greater savings opportunities that help them to become financially better off,” says Mike Henry, senior vice president and head of retail payments, deposits and lending at the bank.
Top sources of expected retirement income are personal savings held in registered retirement savings plans (RRSP) and registered retirement income funds (RRIF) with 59%; government pension programs (58%); savings outside RRSPs and RRIFs (38%); and personal employer-sponsored pension plans (37%).
The study also found that the number of pre-retirees who expect to continue working after “officially” retiring remained the same year over year at 60%. The most popular reason was that respondents want to stay mentally active with 51% saying this is the case but half of respondents also said this would be a financial necessity. Approximately one-third of Canadians say they would continue to work for the benefits of social interaction.
The results come from an online survey conducted by The Nielsen Co., using 1,007 of the company’s panel members. Data was collected between Dec. 5 and Dec. 18, 2014.