1.7 million to retire in Canada, according to a BMO survey

Spread the love

1.7 million to retire in Canada, according to a BMO survey

Canadians fear they will need a lot more money for retirement because of inflation.

Canadians believe they now need savings totaling $1.7 million to retire, 20% more than in 2020, according to a survey by BMO Financial Group.

< p class="e-p">This is the highest amount in 13 years.

Caroline Dabu, head of wealth allocation and advisory services at BMO Financial Group, believes the sharp rise reflects Canadians' concerns about current economic conditions, particularly inflation and rising prices.

Canada's annual inflation rate hit a four-decade high of 8.1% in the summer of 2022 and has since fallen to 6.3% in December .

BMO expects the country's Consumer Price Index (CPI) to decline to around 3% by year end.

The rise in inflation in Canada in 2022 outpaced wage gains, eroding the purchasing power of most families and increasing fears about the future.

BMO's poll found that only 44% of Canadians are confident they will have enough money to retire as planned, a drop of 10 % compared to 2020.

Pushing inflation may necessitate adjustments to a retirement plan, such as more savings for younger workers, or cash flow adjustments for Canadians at the end of their working career.

Poll shows 53% of Canadians don't know how much money they'll need in retirement. On the other hand, about 22% of respondents plan to retire between the ages of 60 and 69, with the average age being 62.

All age groups #x27;age, or 74% of respondents, expressed concern about the impact of the current economic environment on their financial situation, and 59% said that the environment has had an impact on their confidence in the ;achieving their retirement goals.

The BMO survey was conducted from November 4 to 7 by the firm Pollara Strategic with 1,500 people. The poll's margin of error is 2.5%, 19 times out of 20.