High net worth Canadians say they require, on average, $2.3 million to be able to live out their ideal retirement lifestyle, according to a study by BMO Harris Private Banking.
This amount is two and half times more than the $908,000 average that Canadians as a whole—irrespective of income level—identified as the optimal amount required for retirement.
“Regardless of your income or the amount of wealth you possess, it’s important to understand that saving for retirement is not a one-size-fits-all proposition in terms of the ideal amount you need to save,” says Yannick Archambault, vice-president and COO, BMO Harris private banking.
The study also finds that the vast majority of high net worth Canadians are upbeat about saving for retirement, with 95% stating that they are confident about their ability to achieve their ideal retirement lifestyle. That compares to just 69% of Canadians overall.
Archambault notes that this optimism shouldn’t come as too much of a surprise, given that the study also found that 86% of high net worth Canadians say they are quite comfortable with their current savings and investment plan.
Furthermore, 70% expect stocks to generate the most solid returns over the next five years, well ahead of real estate (39%), bonds (24%) and cash (19%).