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How Much Money Canadians Need to Retire?
In order to live a good life after retirement, a new BMO survey finds that Canadians need around $1.7 million saving to retire in Canada.
Since BMO started its surveys, this $1.7 m is the largest sum they have seen needed for retirement in Canada. Only two years ago, Canadians needed only about $1.4 million savings so they could retire. However, this is a big jump from the old expectations.
This unexpected increment has made Canadians concerned about the economic conditions, especially inflation prices, of the country.
Result of Canada’s Inflation Rate
The annual rate of Canadian inflation hit 8.1% in 2022’s summer of 2022 and after that in December 2022, it fell to 6.3%. This increase even exceeded wage profits, while creating an eroding purchasing power for almost all families of Canada.
This BMO survey also found that only 44% of the whole population of Canadians are confident about their retirement plans.
This rising inflation has urged the working population of Canada to contribute a little from each month of their income to savings. Now this will not be much difficult if Canadians can make a plan that includes their individual goals and get a financial advisor’s help, then savings would be easier than thought.
This survey conducted by the BMO also analyzed that around 22% of Canada’s population plans on retiring between the ages of 60 and 69.
The survey was also able to pick the anxiety of millennials and Generation Z regarding the retirement savings situation. About 74% of survey takers said they are worried about the influence of Canada’s current conditions on their financial situations. While 59% of Canadians said the economic conditions have influenced and affected their plans of retirement.
If you have around $1.7 million saved up for your retirement, then your future may be set. However, if some of you are still wondering how to set aside a large sum of this kind, well, start saving now so you could enjoy your life after retirement.
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