More than Half of Canadians Fear Outliving Retirement Savings
Nearly six in 10 Canadians (59%) worry they will outlive their retirement savings, a new survey by the Canada Pension Plan Investment Board (CPPIB) reveals. The study highlights the importance of financial planning in retirement confidence.
Impact of Financial Planning on Confidence
Over half (52%) of non-retirees who have a financial plan feel more assured that their money will last throughout their retirement. This shows that having a plan is the main factor boosting confidence about financial security in retirement.
Effect of CPP Income on Retirement Stress
Those who currently receive or expect to receive income from the Canada Pension Plan (CPP) report less stress about retirement finances compared to those without CPP income:
- Retirement planning stress: 49% with CPP vs. 39% without CPP
- Confidence in savings lasting: 52% with CPP vs. 44% without CPP
Role of Financial Education
Almost half of respondents (48%) acknowledged that a parent, family member, friend, or teacher significantly influenced their financial knowledge. These individuals generally experience lower stress levels and greater confidence about retiring.
“Anxiety peaked among Canadians aged 55 to 59 before declining in retirement.”
Retirement Planning Gaps
The survey found that a large portion of Canadians lack a retirement plan, with minimal change from the previous year:
- 55% of non-retirees have no retirement plan
- 44% of retirees have no retirement plan
This ongoing absence of planning contributes to widespread financial anxiety about retirement readiness.
Author's Summary
More than half of Canadians fear outliving their savings, while planning and CPP income significantly improve confidence and reduce retirement anxiety.