Nearly half (48 per cent) of working-age Canadians are not saving for retirement, according to a global report by HSBC.
The report, which surveyed more than 18,000 working-age individuals and retirees across 17 countries including 1,037 in Canada, found that this figure is higher in Argentina (65 per cent), Taiwan (54 per cent), France (53 per cent) and Mexico (52 per cent).
While 53 per cent of the Canadian retirees surveyed said a government pension is helping them fund their retirement, only 35 per cent of working-age Canadians said they expect that to be the case when they retire. Instead, pre-retirees plan to rely on personal pension plans, cash savings and properties.
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“[Working-age Canadians] are twice as likely to consider selling their homes to fund their retirement compared to those who have been able to stay on-course with their retirement savings plans,” says Betty Miao, executive vice-president and head of retail banking and wealth management at HSBC Bank Canada.
The survey found that 20 per cent of working age Canadians said they hope downsizing or selling their properties will help them fund retirement, compared to five per cent of retirees who said the same. Canada ranks well above the global average (12 per cent) for this question, and just behind Australia (26 per cent), Britain (22 per cent) and Singapore (21 per cent).
The report also shows how global retirees receive their retirement income: 41 per cent receive income from cash savings and deposits; 28 per cent from a workplace defined benefit pension plan; 23 per cent from a spouse or partner’s income; and 22 per cent from stocks and shares.
Pre-retirees, though, have different views on how they might fund their retirement: 42 per cent are expecting to rely on cash savings and deposits; 29 per cent on income earned from part-time work; 23 per cent on personal pension plans; and 20 per cent on inheritance.
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The report also found:
- 39 per cent of Canadian pre-retirees said they would have started saving for retirement at an earlier age, as would 32 per cent of retirees.
- 45 per cent of Canadian respondents who have received retirement advice and/or information said it gave them a better understanding of the financial implications of their choices, and 32 per cent said it helped them avoid making mistakes.