According to a new BMO study, Canadians believe they need to have $1.7 million in savings to retire, which is 20 percent more than in 2020.
This impressive figure is the largest amount since BMO first began interviewing Canadians about their retirement expectations 13 years ago.
The survey results reflect Canadians’ concern about current economic conditions, especially inflation and rising prices, said Caroline Dabu, head of wealth distribution and advisory services at BMO Financial Group.
A sharp increase in the inflation rate in Canada in 2022 exceeded wage growth, which undermines the purchasing power of most families and increases fears about the future. A BMO survey found that only 44 percent of Canadians are confident that they will have enough money to retire according to the plan – 10 percent less than in 2020.
“In the survey, we noticed that 53 percent of Canadians don’t know how much they will need to retire,” Dabu said.
The BMO study also found that about 22 percent of Canadians plan to retire between the ages of 60 and 69, and the average age is 62.
All age groups – 74% of respondents – said they were concerned about how the current economic conditions would affect their financial situation, and 59% said that economic conditions had affected their confidence in achieving their retirement goals.