Canadians dream of early retirement but few are taking steps to achieve it
TORONTO, Jan. 15, 2013
ING DIRECT survey finds 65% of Canadians either don't have an RSP or have made
no contributions to their retirement savings in 2012
TORONTO, Jan. 15, 2013 /PRNewswire/ - Two-thirds of Canadians (65%) are
worried about their financial wellbeing during retirement and many admit to
not even having an RSP, according to a new survey from ING DIRECT. When asked
what concerns them most about their impending golden years, 56% admit not
having enough income to sustain a good quality of life, while 13% are afraid
of still having debt.
The study, commissioned by ING DIRECT and hosted on the Angus Reid panel,
found that, despite their concern, nearly half of Canadians (48%) don't have a
financial plan in place. Key reasons for not having a retirement plan include:
it not being a priority (24%), not feeling knowledgeable enough to create a
financial plan (18%) and not having the right tools to create a plan (17%).
"While paying off debt and saving for other goals, like a child's education,
are important priorities, they're often done at the expense of saving for
retirement", said Peter Aceto, president and CEO, ING DIRECT. "You need to
strike a financial balance so that contributing to an RSP isn't overlooked.
By starting early, even if it means starting small, you can feel confident
that you're taking care of your financial future."
While Canadians appear eager to retire early - 20% of those polled say they
plan to retire by age 60, a number that increases to 28% when looking at
Canadians ages 18 to 34 - few have the financial habits to support their early
retirement dreams. An alarming 65% of Canadians say they either don't have a
retirement savings plan or did not make any contributions to their RSP in
In addition to the financial implications of neglecting retirement savings,
Canadians admit it's also taking a toll on their emotional health. More than a
quarter (26%) of Canadians who did not make RSP contributions in 2012
described themselves as feeling concerned, stressed/anxious, hopeless or
overwhelmed about it.
"Planning for retirement and coming up with a financial plan really doesn't
have to be complicated," said Aceto. "If you're not sure where to start, begin
by having conversations about things like money and retirement investments
with your family and friends. Social media and other online tools can also
provide great information to help you think about money and how to plan your
ING DIRECT's online Retirement Calculator is an easy-to-use resource that can
help Canadians calculate how much they will need to save between now and
retirement. The calculator provides an estimate based on current retirement
savings, monthly contributions, age and other factors.
Saving regularly yields confidence
Canadians who made RSP contributions in 2012 are decidedly more positive about
their saving habits. When asked to sum up how they feel about saving during
RSP season, these regular contributors described themselves as feeling calm
(29%), safe (20%) and confident (20%).
One key to their positivity and savings success might be in regular, automatic
savings habits. Over a third (35%) of Canadians who plan to retire and have an
RSP say they have money automatically transferred to an RSP account on a
regular basis. One in 10 say they make one lump sum to their RSP accounts
during RSP season (January - February) while 6% deposit one lump sum at some
other point during the year.
ING DIRECT offers Canadians a range of retirement investment options,
including RSPs, TFSAs, Mutual Funds, GICs, and savings accounts. New clients
who open a RSP or TFSA by March 1, 2013 are eligible to receive ING DIRECT's
$50 new client bonus*. Visit ingdirect.ca/en/landingpage/rsprelief to learn
About the Survey
On December 14, 2012, an online survey was conducted among a sample of 1,008
Canadian adults who are Angus Reid Forum panel members. The margin of error —
which measures sampling variability — is +/- 3.09%, 19 times out of 20. The
sample was balanced by age, gender and region according to the most recent
census data. Discrepancies in or between totals are due to rounding.
ING Bank of Canada, operating under the trade name of ING DIRECT, is a wholly
owned subsidiary of Scotiabank. INGDIRECT is Canada's leading direct bank
with over 1.8 million Clients and close to $40 billion in total assets.
INGDIRECT is a bright way forward in everyday banking for Canadians, offering
value added, simple products such as high interest savings accounts, including
TFSAs, GICs and RSPs with no fees or service charges, low rates on mortgages
and a no-fee, daily chequing account that actually pays interest. Low cost,
index based mutual funds are sold through INGDIRECT Funds Limited. INGDIRECT
has been operating in Canada since 1997, and has paid more than $5 billion in
interest to Clients. INGDIRECT is open for banking 24 hours a day, 7 days a
week, at ingdirect.ca, on mobile devices at m.ingdirect.ca or by calling
* Conditions apply and are outlined at ingdirect.ca/en/landingpage/rsprelief
ING Bank of Canada and its subsidiaries have been acquired by The Bank of Nova
Scotia and are no longer affiliated with ING Groep N.V. The trademarks ING,
ING DIRECT, ING Lion, the ING Lion logo and any derivation, variation,
translation or adaptation thereof are trademarks of ING Groep N.V. and are
used under license.
SOURCE ING DIRECT
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