According to a recent CIBC poll conducted by Harris/Decima, the average Canadian plans to retire at 63. The poll also shows that as Canadians draw closer to retirement they become less optimistic about achieving their savings goals and believe it more likely they’ll carry some debt into retirement.
As much as 22% of Canadians expect to carry debt into their retirement. But, from past CIBC research the numbers show that 54% of retired Canadians hold some form of debt.
CIBC is using this research to persuade Canadians to save more for their retirement as shown by a statement by Christina Kramer, Executive Vice-President, Retail Distribution and Channel Strategy, CIBC:
“Our CIBC Poll shows that Canadians set out with a vision of building up their savings and eliminating debt to retire at a time of their choosing, but with each passing year they feel less optimistic about their plans,” …”These findings demonstrate the importance of having a plan in place and making progress towards your goals every year, to give you the flexibility to make choices about when and how you retire.”
Although past CIBC polls show that Canadians believe they will be debt free by age 55, many don’t achieve this target. If debt is carried closer to person’s target retirement age of 63, it will restrict the cash flow available for savings and will likely lead to Canadians missing the savings goals they have set for themselves.
“Your finances are all connected, meaning the more effective you are at debt management, the more funds you have available to accelerate savings for retirement,” commented Ms. Kramer. “Sitting down with an advisor to map out a strategy that addresses both your savings and debt management plans is an integral step to achieving your long term savings goals and enjoying the retirement you want.”
Average age at which Canadians expect to retire:
National Average – Age 63
Atlantic Canada - Age 62
Quebec - Age 62
Ontario – Age 63
Manitoba/Saskatchewan – Age 63
Alberta – Age 62
BC – Age 64
Percentage of Canadians, by age, who believe the main reason they will retire is that they will have saved enough money to do so:
Age 18-24 – 50 per cent
Age 25-34 – 43 per cent
Age 35-44 – 37 per cent
Age 45-54 – 35 per cent
Age 55-64 – 21 per cent
Percentage of Canadians by age who expect to carry some debt into their eventual retirement:
Age 18-24 – 13 per cent
Age 25-34 – 15 per cent
Age 35-44 – 24 per cent
Age 45-54 – 26 per cent
Age 55-64 – 31 per cent
Each week, Harris/Decima interviews just over 1000 Canadians through teleVox, the company’s national telephone omnibus survey. These data were gathered in a sample of 1,116 employed Canadians and 683 retired Canadians betweenSeptember 8th and 19th, 2011. A sample of this size has a margin of error of +/-2.9% and 3.7% respectively, 19 times out of 20.
CIBC (CM: TSX;NYSE) is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com.