Nearly a third (29 per cent) of Canadians expressed concern about the impact of rising inflation on their retirement savings, according to a new survey by the Royal Bank of Canada.
It found concerns about inflation were highest among respondents aged 25 to 34 (40 per cent). In addition to inflation, which reached a 30-year high of 4.8 per cent last week, respondents also cited challenges such as having enough savings (47 per cent), maintaining their standard of living (36 per cent), the cost of health care (27 per cent) and outliving their savings (25 per cent).
However, 48 per cent of respondents said they have a financial plan and the majority (86 per cent) are feeling positive about their financial future because of that plan. More than half (53 per cent) of Canadians have a registered retirement savings plan, up from 46 per cent in 2021. Within those RRSPs, more Canadians are holding mutual funds (36 per cent versus 30 per cent last year), stocks (20 per cent versus 14 per cent) and exchange-traded funds (11 per cent versus seven per cent).
In addition, the percentage of Canadians who are building their investment portfolios increased to 28 per cent from 25 per cent last year, with respondents aged 25 to 34 (32 per cent) expressing the most interest in building these portfolios.