Many
Canadians expect to be working past the age of 65 because they won’t be able to
afford to retire.
That’s
according to a new survey from Chartered Professional Accountants of Canada
(CPA Canada) which found that 42% of respondents who are not already retired
think they will still be working past 65.
Saving for
retirement is the most substantial financial concern of 20% of respondents
while 17% cited managing debt.
That said,
41% of respondents said they are confident that their finances will improve
over the next 12 months; 45% expect them to be the same and 11% think they will
be worse.
While the vast majority of
Canadians expect to be in the same or better financial position next year, there
is still lingering anxiety among others about saving for the future and
managing current debt. This highlights the importance of financial literacy
education, in particular, around retirement saving and debt management.
Of the 2,042
people surveyed, 74% said they contribute to their savings monthly with 63%
having a savings account and 52% having funds in a TFSA (66% of them made
contributions in 2017). Just 9% said they have no investments or accounts at
all.
Interest
rate concerns
With
interest rates set to rise further in 2019, 39% said that a significant rise
would make mortgage and debt payments challenging.
Almost two
thirds of respondents said they have made cutbacks to day-to-day spending over
the past five years.
And when
asked about their financial skills, 48% gave themselves a grade of B or higher
and 49% graded themselves C or lower, 3% were unsure
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