- Almost two-thirds of Canadians currently have an RRSP
- 57% plan to contribute to their RRSP before 1st of March deadline
- However, few have thought about retirement planning beyond RRSPs
WINNIPEG, MB, February 10, 2022 /CNW/ – IG Wealth Management (“IG”) today released a study on Canadians and retirement planning. The results show that Canadian workers aged 18 and older have adopted the Registered Retirement Savings Plan (“RRSP”) as a means of investing and saving for retirement. However, most have given little thought to a holistic approach to retirement planning that goes beyond investing.
The study, conducted by Pollara Strategic Insights for IG, found that RRSPs remain a popular option for Canadians looking to save for retirement in a tax-efficient way:
- Almost two-thirds (62%) of Canadians reported having an RRSP account.
- The average amount held in an RRSP is $133,000.
- Among those who have an RRSP, 57% have contributed or will contribute before retirement. 1st of March deadline.
“Since its launch in 1957, the RRSP has become one of the most important and valuable vehicles available to Canadians to effectively save for their retirement,” said Damon Murchison, President and CEO, IG Wealth Management. “However, investing for retirement is only one piece of the overall retirement preparedness puzzle – it is important to think of retirement planning in a more holistic way and as a key part of a plan. overall finance.”
According to the study, it is clear that Canadians need to think beyond their RRSP holdings and develop a more robust approach to retirement planning. For example:
- only 21% of Canadians understand how they will be taxed in retirement;
- only 18 percent have thought about their monthly retirement budget;
- as few as a fifth expressed confidence in knowing what their insurance needs will be; and
- less than 20% (19%) have an estate plan in place.
Additionally, just over half (57%) of married/common-law couples have discussed their retirement plans with each other.
Murchison noted that not having a comprehensive approach to retirement planning could impact disposable income in retirement. Also, without a plan, an individual is more likely to run out of money, think they will run out, or make mistakes when it comes to withdrawing money, paying off debt, or managing a inheritance in a tax efficient way.
“IG Advisors go beyond RRSPs to consider all aspects of a client’s retirement. This includes tax planning, insurance and health needs, budgeting, estate planning, housing, and more generally. , facilitating discussions to ensure that all family members are on the same page,” Mr. Murchison concluded.
About IG Wealth Management
Founded in 1926, IG Wealth Management is a national leader in providing personalized financial solutions to Canadians through a network of advisors located across Canada. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has $116.8 billion in assets under advisement at January 31, 2022 and is a member of the IGM Financial Inc. (TSX:IGM) group of companies. IGM Financial is one of from Canada leading diversified wealth and asset management companies with approximately $270.7 billion of total assets under management and advice as of January 31, 2022.
About the Pollara Study
This study was conducted with an online sample of n=2,000 and was conducted between January 13 and January 182022. Results from a random sample of this size could be considered accurate to within ±2.2% of percentage points, 19 times out of 20. Results were weighted by age, gender, and region, using the latest Statistics Canada data, be representative of the entire Canadian population.
SOURCE IG Wealth Management
For further information: Hilary Bassett, 416-951-7558, [email protected]; Lara Berguglia (Quebec), 514-994-2382, [email protected]