With a blitz to get us in the mood for retirement saving ahead of the RSP deadline in a week or so, the perennial question that dogs this topic is: How much is enough?
For most Canadians, that is a perplexing question. Just how big should our retirement savings pile be? The financial industry would do itself a huge favour if it would provide us with some simple answers to that question instead of the usual – tell me what you’d like it to be.
As a result of this failure to communicate very clearly, we end up with studies like one just completed for CIBC that says 90 per cent of Canadians have not built a retirement plan. Somehow, though, we have come to the conclusion that $756,000 is the amount we’ll need to retire. That’s average we guessed at anyway.
This is a daunting topic and one that makes people look the other way when it comes up, so much so that fully 30 per cent of us – one third of Canadians – have no retirement savings at all.