One-third of Canadians hope to fund their retirement costs by winning the lottery despite the odds, according to a study.

BMO Financial Group’s RRSP study shows that 34% hope to use lottery winnings to pay for retirement, including 14% that will rely on it heavily.

The odds of getting all six numbers in the Lotto 6/49 draw are one in 13,983,816, while the odds of matching all seven numbers in the LottoMax draw are one in 28,633,528.

And despite a low payout, 89% of future retirees plan to rely on the Canada Pension Plan (CPP) to take care of their expenses during their golden years. And 31% say they’ll heavily depend on the CPP. The average amount a recipient gets is just $594.19 a month.

Chris Buttigieg, the bank’s senior manager of wealth planning strategy, notes that the CPP should just be a supplementary component of a person’s overall retirement income.

The study also identifies other sources of income to fund their retirement: RRSPs and tax-free savings accounts (88%), part-time work (59%), selling their home/property (49%), an inheritance (40%) and support from their family/children (28%).

He adds that, while some Canadians may have a workplace pension plan, the shift from DB to DC is continuing.

“Given that there are no guarantees with a DC pension plan,” says Buttigieg, “it makes sense to diversify your retirement nest egg and identify and build up other sources of retirement income as well.”

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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Jim:

The odds on Lotteries appear much better than Mutual funds as we continue to hear horror stories from those retirees who used them. For twenty years the CLIA salsreps extolled the line that We would not likely collect CPP or OAS that there funds would run out. They also portrayed Mutual Funds as a less costly alternative to annuities.
Now that they were wrong on both counts is it any wonder that the public no longer invests in their future retirement based on the advice of batters with two strikes on two bad pitches. And oddly enough those who were pitching those virtues are among the one percent of the richest Canadians.

Friday, January 31 at 1:11 pm | Reply

Robert in Vancouver:

Most Canadians have no knowledge of how to invest, how the economy works, or why Canada has such a high standard of living compared to most other countries.

Friday, January 31 at 1:16 pm | Reply

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