Canada: Survey Finds Canadians Needing To Delay Retirement Because of Lack of Savings

According to a survey conducted by the Canadian Payroll Association, 40% of Canadians said they now expect to retire later than they previously planned, and the primary reason (cited by 40%) was "I'm not saving enough money for retirement." Furthermore, the CPA survey found 57% of those surveyed said that they would be in financial difficulty if their pay was delayed by even a week.

Almost three-quarters of employees (74%) said they have saved less than a quarter of their retirement savings goal. “This is particularly troubling when you realize that 71% of the respondents are over the age of 35, with the bulk in their main saving years between 35 and 54,” states Dianne Winsor, CPM, Chairman of the CPA.

Another significant finding – half (50%) of employees across the country reported that they are saving 5% or less of their net pay. This is well below the 10% of net pay that financial planning experts generally recommend as a retirement savings rate.

Source: Canadian Payroll Association News Release (September 8, 2011)