Are you stashing money away for life after work?
A new report from HSBC says almost half of working Canadians have not started or are not currently saving for retirement.
The study found 48 per cent of pre-retirees in Canada have yet to start or are currently not saving for retirement. Working-age respondents in Argentina (65%), Taiwan (54%), France (53%), and Mexico (52%) are the most likely to say they’re not currently saving for retirement.
Many working age Canadians are relying on downsizing to assist them in retirement.
An increasing number of pre-retirees in Canada say they expect personal pension schemes, cash savings, as well as property will fund their retirement. One in five (20%) of Canadian pre-retirees — compared to just one in 20 (5%) of current retirees — say that income from downsizing or selling a primary or secondary property will help them fund their retirement.
“While Canadian retirees rank as some of the happiest in the world, almost half of working-age people in Canada are not currently saving for retirement. Furthermore, they are twice as likely to consider selling their homes to fund their retirement compared to those who have been able to stay on-course with their retirement savings plans,” said Betty Miao, Executive Vice President and Head of Retail Banking and Wealth Management, HSBC Bank Canada.
The survey also shows Canadians are the most likely in the world to expect to move into a retirement home one day. Three in five (59%) Canadian pre-retirees say they plan to move into a retirement home one day — four-times more likely than current retirees — and almost double the global average (31%).
The global poll also found current Canadian retirees were among the “happiest,” with more than 70% reporting they feel happy in retirement, second only to retirees in Mexico (80%).
In comparison, retirees in Hong Kong (50%), Singapore (50%) and Taiwan (53%) are the least likely to describe their retirement as “happy.”
Further, almost 8 in 10 (77%) working age Canadians who have started saving think they will feel happy in retirement, compared to just over half (55%) who have not.