Cdns baffled by retirement planning

When it comes to retirement planning, Canadians are suffering from the willing-but-not-able syndrome.

According to the recent Desjardins Financial Security’s Retirement survey, Canadians are financially burdened, not indifferent, and are ready for financial help.

In its ninth edition, the study’s results, coming at the tail end of the RRSP season, find that 43.3% of Canadians are actually interested in their retirement planning.

Difficulty in saving presents opportunities for both advisors and investors, according to Michael Aziz, regional vice president of investment product sales at Desjardins Financial Security. “If financial advisors shelve their usual ‘money lecture’ and speak to their clients heart, they will gain their clients’ trust and investors will achieve financial security by becoming more consistent and confident investors,” he said.

Study noted that that most respondents feel retirement planning is stressful, but neither too much nor too little, as they described their retirement hopes and dreams. While spending more time with friends and family was top priority, the majority hoped to have enough retirement savings and to be healthy.

Most respondents admitted to not being strong savers and that they found financial products and services complicated. This attitude was highest in Québec, the Maritimes and among 25-34 year olds, it said. Most did not have a written financial plan, a Tax Free Savings Account (TFSA) or a pension.

On a more positive note, the study found that Canadians want to take back control of their financial habits. “When asked about their financial priorities, the majority were focused on debt reduction and staying on budget,” said Aziz. “I believe that the best way to achieve these goals is by knowing yourself and your savings profile.”

Five savings profiles were identified through further analysis of the survey results:

•The Self-confident: a super-saver with little or no debt. He knows he’s on the right path for a successful retirement.

•The Engaged: is typically older, has few debts and retirement is around the corner.

•The Minimalist: tends to carry a lot of debt, has little savings and isn’t sure that he’ll be ready for retirement.

•The Nonchalant: the youngest of the group, is focused on finishing school and starting his career. Since retirement is more than 40 years away, he’d prefer to spend his money on cool stuff instead of saving for a rainy day.

•The Debtor: carries the most debt and has the least amount of savings. He believes that his work pension will be enough for retirement, so he tends not to put aside any extra retirement savings.

Although some weren’t sure where to start or to look for help, all the participants expressed a willingness to seek financial advice and to make the necessary sacrifices to prepare for retirement.

“Finding the help you need is now really easy,” assured Aziz. “It can be just around the corner, over the phone or online; being able to identify your bad money habits is really the first step to making improvements.”