One third in B. C. have no plans
But we’re better prepared than most other Canadians, says CIBC poll
More than one- third of British Columbians say they are not financially prepared for their retirement, a new CIBC poll shows.
“It’s a fairly large number and that’s the bad news,” said Mike Stevenson, CIBC’S senior vice- president, Western Canada. “The good news is that compared with the rest of Canada, we were a little better. Forty- four per cent of Canadians said they were not prepared for retirement.”
The numbers improve as Canadians approach retirement age: nearly half of Canadians aged 25- 44 say they’re unprepared for retirement, while only 31 per cent of those aged 55- 64 report being unready.
“What we also found is those Canadians who have a long- term financial plan are more than three times more likely to say they are financially prepared for retirement,” Stevenson said. Of those who have a plan, 76 per cent say they are financially prepared for retirement, compared with just 25 per cent among those who don’t have a plan.
Again, B. C. comes out ahead of the rest of Canada with 64 per cent of B. C. residents saying they have a long- term investment plan for their retirement. The national average is only 53 per cent, the poll found.
“What really jumps out is the importance of having a financial plan, starting early and working with an adviser. Don’t let it go on autopilot; be proactive,” Stevenson said. “You need to think of your investments and your debt. Clearly, if you’re carrying debt into retirement, that’s going to affect your cash flow.”
When asked what products he would recommend investing in — Tax Free Savings Account, Registered Retirement Savings Plan, stocks or bonds — he said each person is unique.
“That really varies person to person, depending on your investment knowledge, your time horizon and your risk tolerance,” Stevenson said. “Those are questions you need to work with an accredited financial adviser to make the right determination for you. Working with an adviser can help you understand your options.”