Few Quebecers confident they’ll hit savings goal: poll

Quebecers have the lowest retirement savings goals in Canada — but even though they plan to save less money for retirement, they’re not any more confident about reaching those goals than other Canadians, a new survey conducted for RBC suggests. Quebecers surveyed believe they need to have savings of $427,000 in order to have a “comfortable financial future.” That’s compared to $1.07 million in British Columbia, the province with the highest “nest egg amount.” Survey respondents in Ontario said they believe they need a “nest egg amount” of $872,000. The national average was $787,000. Just how much someone needs to save depends on their retirement goals, said Brigitte Felx, a financial planner at RBC. Someone who plans to spend their retirement living in an apartment in Montreal won’t need to save as much as someone who plans to travel frequently, she said. Even though Quebecers have a smaller financial goal than many other Canadians, only 14 per cent of respondents from the province said they were very confident they would reach their goal, below the 16 per cent national average. Another 39 per cent of respondents from Quebec said they believe they’ll never build up their nest egg enough. That’s the second-lowest rate in the country. Only Ontario had a lower percentage of respondents who believed they would never reach their goal: 32 per cent. While a slightly higher percentage of respondents from B.C. were very confident they would reach their goal — 16 per cent — more than half of respondents from that province believe they will never build up enough of a nest egg. That confidence, Felx said, is directly related to having a financial plan. “With a financial plan, you’ll know exactly how much you can save. It’s going to bring back confidence,” she said. The survey, conducted by Ipsos, found that 53 per cent of respondents from Quebec had no financial plan. Only Atlantic Canada had a higher rate of respondents with no plan, at 54 per cent. Of the 47 per cent of respondents who have a financial plan, 34 per cent said that plan is in their head. Across the country, 54 per cent of respondents said they have a financial plan. Felx said she believes the best way to develop a plan is work with a professional. A financial planner will consider an individual’s financial situation and goals, and help them create a savings plan — considering factors like inflation and the individual’s risk tolerance. There are also online tools that can help people create their own plans, she said. The best way to reach your retirement goals, she said, is to save a specific amount of money every month. “It’s kind of like when you want to run a marathon,” she said — it’s a long, step-by-step process. And, she said, plans will change over time, as the individual’s circumstances and other factors change. For Quebecers, the most important reason to build a nest egg for their future was being debt-free, according to the survey, with 70 per cent of respondents saying that was a motivator, above the national average of 66 per cent. Quebecers were less likely than Canadians in any other part of the country to say they planned to save by eating out less, postponing major purchases or cutting back on travel. Two thousand people across Canada responded to the survey, which was conducted from Nov. 20 to 26. Ipsos said it is accurate within 2.2 percentage points.