Government must quicken its pace on pension reform to protect and support the retirement of Canadians, according to polls released Monday.
An RBC Dexia Investor Services poll found that 92% of defined benefit plan sponsors believe the federal and provincial governments are not making sufficient progress on pension reform. While most plan sponsors understood the need for broad discussion, they believe a more tangible action plan needs to be implemented.
Further delays to reform will only exasperate concerns of Canadians approaching retirement. An Ipsos-Reid survey conducted for the Canadian Institute of Actuaries released Monday found that 43% of Canadians over the age of 45 are not prepared for their retirement. A third said they were not confident about their financial future.
About 37% of pre-retired respondents over 45 said the economic downturn and the financial crisis had impacted their retirement plans, compared to 27% of retirees.
Overall, pre-retired respondents and retirees said their biggest concern was the impact inflation could have on the value of their savings and investments.
Most pre-retirees said reducing their consumer debt, paying off their mortgage or cutting back on spending were key strategies they planned to employ to increase their retirement nest egg. However, fewer people are following through on their intentions, suggesting some are unrealistic about their retirement goals.
About 40% said they plan to work longer before retirement, while 20% said they would never fully retire. In comparison, only 4% of retirees say they will never fully retire.