Immigrants have saved almost $100,000 for retirement

Two thirds of immigrants to Canada are saving for retirement, finds a survey by BMO Wealth Management.

BMO WM looked at a variety of financial issues facing people who have moved to Canada fewer than 10 years ago.

If you have clients who have recently arrived in Canada, and who need advice in their native languages, Advisor to Client has a new resource for you — classic client articles are now available in Hindi, Punjabi and Chinese. For example, you can send this Glossary of common investment terms to new clients, which is available in the other three languages.

Read: Advisor to Client now in three more languages

The study revealed new Canadians have saved an average of $98,600 for retirement, compared with an average of $45,902 that Canadians overall have in RRSPs.

When asked about their general views on retirement, new Canadians:

• Plan to retire, on average, at age 63 and feel they need $660,000 to fund their ideal retirement lifestyle. Canadians as a whole feel they need an average of $442,328 for retirement.
• Feel confident that they will be able to achieve their ideal retirement lifestyle (65%).

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Kids as Additional Source of Support

When children of new Canadians were asked if their parents would require their help in retirement, the study found more than half (53%) anticipate having to help their parents financially or having their parents live with them in old age.

However, 58% of immigrant parents said that they don’t expect their children to help them fund their retirement — even if they need financial assistance — while only 31% said they do.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.