The new rise in inflation and that of interest rates have direct consequences on the cost of living, but also on the pensions of Canadians who are increasingly threatened, according to a recent survey by Abacus Date and Healthcare of Ontario Pension Plan (HOOPP).
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Nearly 55% of Canadians surveyed for this poll said they were worried about not having enough money for their retirement, up 6% from last year.
The day-to-day cost of living (66%), inflation (62%) and housing affordability (56%) are among other concerns that impact retirement security.
“Concerns about retirement and savings have been high every year since we conducted the Retirement in Canada Survey, and they are now exacerbated by rising interest rates and inflation,” said said Thursday in a statement Steven McCormick, senior vice president, plan operations, HOOPP.
“Well over half of Canadians expect these factors to cause them financial hardship and force them to retire later. At the same time, financing retirement by selling a home is becoming a less viable strategy for many people. This raises the question of whether Canada's younger generations are headed for a perfect storm when it comes to retirement security,” he added.
While 32% of respondents said they hadn't saved anything for retirement, 38% said they hadn't put any money aside in the past year.
And while nearly 45% of homeowners plan to rely on selling their home for their retirement, this prospect is becoming increasingly risky in the context of the current housing market.
“The overall outlook for retirement security in Canada is darkening,” said David Coletto, CEO of Abacus Data.
The survey was conducted online with 1,716 Canadians over the age of 18 from April 21-27, 2022.