Once again, a deeper look into the financial situation of Canadians reveals serious concerns.
A CIBC survey raises some big concerns about the situation facing many Canadians close to retirement.
As noted by Pattie Lovett-Reid writing for BNN, “According to the CIBC report released on Thursday, the average amount of personal savings Canadians estimate they’ll need to retire comfortably is $756,000. What’s disturbing to me is that this $756,000 figure is simply an estimate and not based on fundamentals, such as how much money you can expect from your employer, the government and various personal savings vehicles.”
The concern is heightened by the fact that many aren’t reaching the savings estimate:
“Another troublesome finding from the CIBC poll is that the average amount that Canadians save for retirement is only $184,000, while 30 per cent of respondents said they have no retirement savings and 19 per cent have saved less than $50,000. “
Now, there are growing concerns of a retirement crisis.
A big part of this looming problem is the fact that government has dramatically grown in size for decades. Bit by bit, more money is taken out of the pockets of Canadians. Combined with decades of stagnant wages, and weak economic growth, many people are simply unable to make enough money to save what is necessary for retirement.
The situation is also dire for younger generations, feeding a widespread perception that retirement will be out of reach for millions of Canadians.
The true solution to this problem is to unleash the growth of our economy and make it easier for people to amass the income necessary for savings and a secure retirement. Additionally, a stronger economy would make it possible for families to help those who are struggling as retirement nears.
Unfortunately, the government has been moving in the opposite direction – imposing more taxes and more regulations. Unless that changes, a retirement crisis will become more and more likely.