Just 48 per cent of working Canadians say they have an employer-sponsored pension plan, according to a new survey by IG Wealth Management.
The survey, which polled more than 1,300 workers, found just 11 per cent of non-retired Canadians know how much annual income they’ll need in retirement and nearly half saying they don’t know.
Read: Report finds Canada’s retirement system ranks middle of the pack among global peers
Among workers with a workplace pension plan, a quarter said they’re unsure whether it’s a defined benefit or defined contribution plan, while fewer than half said they have an understanding of key income tools such as old-age security, registered retirement income funds or how retirement income is taxed.
The survey also found financial uncertainty is also taking an emotional toll on workers. More than half of non-retired Canadians reported negative feelings about retirement and 67 per cent reported not having stress-tested their retirement plan against risks such as inflation, health-care costs, market downturns and longevity risk.
While only 36 per cent of Canadians currently work with a financial advisor, those who do report greater confidence and preparedness, underscoring the growing role of financial advice as responsibility for retirement planning shifts increasingly to individuals.