The survey showed that 62% of the 1,716 Canadian adults that HOOPP and Abacus Data surveyed in late April were most concerned about affording daily living costs. But, 53% of those surveyed said they’re struggling to save for retirement. 32% said they haven’t saved anything for retirement yet, while 38% said they haven’t saved anything for retirement in the past year.
Nearly half (45%) of the Canadians surveyed said they’re also planning to rely on selling their home to set themselves up for retirement, but that plan is becoming increasingly risky. Besides concerns about current housing affordability, 58% of the non-homeowners were worried that the rising interest rates would impact their ability to buy a home. Just as many of those who had a home were worried whether they’ll be able to sell their homes and reap those funds when they retire.
“Inflation and housing affordability is a concern for all Canadians, but predominantly those under the age of 35,” said Zanardo. “They’re growing increasingly concerned about the day to day cost of living impacting their ability to save for retirement.”
She noted that employees are looking to their employers for help to save for retirement, so HOOPP’s solution is for more employers to develop better workplace retirement plans. Its earlier research showed that two-thirds of people would be willing to receive a lower salary to have a pension. Its employer research also showed that 80% of those surveyed believe that companies have a responsibility to offer a pension plan, which HOOPP notes would be good for business.
“The bottom line is that we know that better pensions help businesses attract and retain talent,” said Zanardo, noting that could give companies an edge in this competitive labour market.
