As the global financial situation becomes ever-more volatile, it seems like certain demographics of people here in Canada are struggling to keep up. However, according to the latest study from a leading banking group, it seems like everyone is finding it tough to keep up with the demands of retirement in later life.
The recent survey discovered that many Canadians are not taking the best steps forward to secure the financial peace of mind they undoubtedly desire. The study, commissioned by the bank and carried out by Angus Reid, found that over half of Canadians (58 per cent) are not financially prepared after they leave the working world, while a further third (33 per cent) have a plan in place of some form that will meet their retirement goals.
More worryingly, barely one-third of respondents (31 per cent) have claimed that retirement is not even on their radar when they consider their personal finances; they have not considered money-saving tactics such as pensions, better utility deals available to their age group such as Castle Cover over 50's policies, or future specialised deals on their electricity and gas from a provider sympathetic to the demographic's requirements.
Naturally, this lack of research is much more prevalent among the younger generations – 39 per cent for those between 25 and 34, and a whopping 56 per cent Canadians in the 18 to 24 bracket. Instead of retirement, most Canadians are focused on simply paying off credit card debt Respondents between 25 and 54 with children under 18 living at home have said that retirement is at the bottom of the list of priorities behind paying off a mortgage or saving for their children's education.
The president and chief executive officer of ING Direct Canada, Peter Aceto, was simple with his advice: “Saving for retirement can't be an afterthought. Despite the amount of debt people are carrying and what we keep hearing in the news, saving is still possible.
“Understanding the importance of starting early, even if it means starting small, has a huge influence on the ability to meet your financial goals,” he continued. “Canadians should also look at the value they're getting from their existing financial products and have ongoing conversations about money with friends, family and on social networks, which can play a big role in being better informed about personal finances.”
Bio: Tom Postance is a retired writer and blogger. Striving to advice the older generation to reduce financial debt and make sure the golden years stay golden.