More Canadians concerned about having enough money to retire: survey

A new survey from the Bank of Montreal found Canadians think they will need $1.7 million in savings to retire, up 20 per cent from a couple of years ago.

But experts caution that how much you need will vary.

“That’s not the number that everyone is going to need,” said BMO’s Caroline Dabu.

“Some (who) retire will need far less than that to retire comfortably, some may need more than that. The important thing is really sitting down and knowing what your goals are, what you’re saving, how long you’re going to have and really tracking your ongoing progress towards those goals.”

The survey also found that around 44 per cent of Canadians are confident they’ll have enough money to retire, down by 10 per cent since 2020.

Dabu said that’s likely because of a few factors.

“Rising interest rates, rising prices, and that’s, in turn, having an effect on decreased confidence around retirement and decreased confidence about having that extra money to divert to savings and investing,” she said.

A local financial expert said the key is planning and navigating through unexpected change.

“If your investments haven’t given you what you need in order to meet your plan, then you can put into action plans,” said Nathan Sugeng of Fontaine & Associates in Sudbury.

“Does that mean you have to work longer? Maybe pick up more work, maybe adjust your budget today so you can save a little bit more to compensate for any of that loss.”

Sugeng said people often wait until their 30s to start planning their retirement, but said they should really start thinking about it as soon as they join the workforce.

“If you started investing at 18 for 10 years and put in $1,000 a month, you’ll end up having more money for your retirement than if you started saving when you’re 35 and, you know, (save) $2,000 a month.”

Sugeng said rather than having a plan A or Plan B for your financial well-being, you should constantly be evolving your plan around the financial climate at the time and be prepared to review and change your profile annually.