I don’t find it all that surprising that a recent study found that a majority of Canadians in their early to mid-40s are not saving enough for their retirement. While we have debated many times in the past how much of a nest egg is needed in retirement and vigorously disagreed when the financial industry suggested it to be a million dollars or more, even the lowest estimates run to at least a few hundred thousand dollars plus a fully paid-off home.
According to the StatsCan Wealth of Canadians survey, 27% of Canadian families in the 35 to 44 age group have no pension assets of any kind. The median value of all pension assets for a family unit in the same age group is around $50,000. The picture is the same with RRSPs with the median value at $22,500 and the average value at $49,100 and again suggests that while a minority is saving well, the vast majority are not. The report mirrors the findings of the recent study:
Private pension assets were concentrated in nearly one-third of family units. About 31% of family units with $100,000 or more in private pension savings held 90.3% of the value of these assets.
Related:
- Jonathan Chevreau’s column in the Financial Post
- Blog posts by Canadian Dream, Canadian Financial Stuff and Canadian Financial DIY.
