These 3  articles from 2018 reflect Canadian policy . However contrary to some perceptions NZ often mirrors off shore research and views, so with the usual common sense caution, read on!

 (1)   Canadian’s estimate $756K will provide a comfortable retirement

Ninety per cent of Canadians don’t have a retirement plan that takes into account their desired post-retirement lifestyle, according to a new survey by the Canadian Imperial Bank of Commerce.

Its survey, which polled more than 1,500 Canadian adults, also found 53 per cent of respondents aren’t sure if they’re saving enough while 37 per cent haven’t thought about retirement or are unable to save.

: Are Canadians on track for retirement savings?

“If you don’t have a retirement plan, you’re throwing darts at numbers in the dark, guessing at how much you’ll need to live on comfortably once you’ve stopped working,” said Jennifer Hubbard, managing director of financial planning and advice at CIBC, in a news release. “It’s important to take an honest look at your finances today, and determine what your retirement goals and dreams are because that will influence when you retire and how much it will cost. That way, you can find the best path to get from here to there.”

Canadians estimate, on average, they’ll need $756,000 in personal savings for a comfortable retirement, according to the survey. Millennials believes they’re need the most, at $917,000, compared to generation X ($842,000) and baby boomers ($518,000).

However, another new survey by the Royal Bank of Canada found only 38 per cent of millennials are actually saving for retirement, despite 46 per cent indicating it as a top financial goal. In addition, 50 per cent of millennials said they don’t have a registered retirement savings plan and, if given the choice to contribute to either an RRSP or a tax-free savings account, 48 per cent would choose a TFSA.

: Fewer Canadians contributing to RRSPs: Statistics Canada

“TSFAs offer a great savings vehicle, but millennials can’t overlook RRSPs, particularly as they move into their 30s,” said Richa Hingorani, senior director of digital strategy at RBC, in a news release. “While retirement can seem so far away for these younger Canadians, we want them to know that time can work in their favour.

“By starting to invest even small amounts on a regular basis into an RRSP now, they can build their future savings through the magic of compounding within their RRSP, with growth through a combination of interest and potential dividends.”

:  Are Canadians doing better on retirement readiness despite RRSP gaps?

The CIBC survey found the average amount Canadians have already saved for retirement is $184,000, while 19 per cent of respondents have saved less than $50,000 and 30 per cent have no retirement savings at all. Among respondents who are nearing retirement (ages 45 to 64), 32 per cent have saved nothing. The average savings for that age group is $345,000, and 49 per cent have saved less than $250,000.

According to the CIBC survey, 43 per cent of Canadian women aged 55 and over don’t have a retirement plan in place, compared to 27 per cent of men in the same age group. It also found that, among those with retirement savings, women have saved an average of almost 25 per cent less than men.

“It’s less about how much you’ve saved, but how your savings line up — or don’t line up — with your lifestyle goals that really matters,” said Hubbard. “With so much on the go, your retirement plan can be the single most powerful and effective tool for building your wealth and financial security. And it’s never too late to start.”

(2)    Canadians worry about outliving retirement savings: surveys

More than 60 per cent of Canadians are concerned they’ll outlive their retirement savings and 45 per cent don’t feel confident they’ll be able to afford the post-work lifestyle they want, according to a new survey by RBC Insurance Services Inc.

The survey, which polled 1,000 Canadians aged 55 to 75, also found respondents use a variety of tools to save for retirement, with registered retirement savings plans (45 per cent), cash (43 per cent) and tax-free savings accounts (39 per cent) ranking the highest. Annuities aren’t widely used, with only 12 per cent of respondents using or planning to use this option, according to the survey.

“Canadians are living longer than in years past, and they want active and productive lifestyles in retirement,” said Jean Salvadore, director of wealth insurance for RBC Insurance, in a news release. “However, some are better prepared for retirement than others. Having sufficient retirement savings is critical, and Canadians should consider a combination of tools and a well-diversified retirement plan to ensure they have enough money to stretch over decades.”

The worry of outliving retirement savings is a concern for solo retirees as well, according to a survey by TD Bank Group. Some 2,500 Canadian adults responded to the survey, 699 of whom are older than 40 and single, widowed, divorced, separated or never married. Of that cohort, 456 said they plan to live alone in retirement.

The TD survey found 47 per cent of respondents are worried about outliving their retirement savings, with concerns ranging from increasing daily living expenses (63 per cent), not having enough money for necessities (41 per cent) and rising health-care costs (39 per cent).

More than a third (39 per cent) of respondents who plan to live alone in retirement said they feel at a disadvantage compared to dual-income couples, and 46 per cent said they struggle to save for retirement while covering day-to-day expenses on their own.

“Facing retirement alone is becoming increasingly prevalent, but what is striking in these findings is the high level of anxiety that comes with this trend,” said Rowena Chan, senior vice-president at TD Wealth Financial Planning, in a press release.

“Canadians planning to retire solo are acutely concerned about whether they are saving enough to meet the wide spectrum of costs they will encounter in their older years — from day-to-day living expenses to providing enough for their own care in the event of illness.

“For those relying on a single income to fund their retirement, it’s critical to think beyond day-to-day financial obligations and plan accordingly for the future,” she added.

(3) Supporting adult children takes its toll on boomers’ retirement plans: survey

As baby boomers approach retirement while their children look for financial help, many are feeling the financial strain.

A new TD survey found 62 per cent of boomers can’t save enough for retirement because they’re supporting adult children or grandchildren. Those kids, however, aren’t taking that money obliviously: 44 per cent of millennials who rely on their parents’ or grandparents’ support said they know that help means fewer retirement savings, and 43 per cent said they’d cut costs rather than asking for financial help.

 Canadians postpone retirement to support children

“As a parent or grandparent, it’s natural to want to help our kids and grandkids who may be facing financial challenges such as finding full-time employment or paying their day-to-day expenses,” Rowena Chan, senior vice-president at TD Wealth Financial Planning, said in a news release. “It’s important that this desire to help is balanced with the goals you have when it comes to retirement.”

She also notes boomer pre-retirees shouldn’t stress too much if helping their children has affected their savings strategy. “A lot can be accomplished in the 10 to 15 years before retirement and planning ahead is a key step in making the journey as smooth as possible.”

For one, pre-retirees should discuss what children who have returned home can contribute to the household budget. For example, they may be happy to cover room and board, but expect the kids to pay for their own cell phone bills, car insurance and movie tickets, as well as contributing to household chores. It’s also important, Chan says, to come up with an exit date, when pre-retirees will no longer financially support their children.