Survey finds many Canadians failing to save, may be forced to postpone retirement

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TORONTO – As the single biggest demographic group in the country, the baby boomer generation, continues to approach retirement, there is growing evidence indicating many will have to postpone their retirement plans.

A new survey finds a stagnant economy combined with a paycheque to paycheque mentality means many Canadians have been unable to save enough for their retirement.

The third annual survey by the Canadian Payroll Association found a majority of respondents are still struggling to save for retirement.

Wendy McLean-Cobbin, a spokeswoman for the CPA, says that because of financial constraints, retirement is being postponed for some.

“About 40 per cent of Canadians said they now expect to retire later than they had previously planned, and another 40 per cent said that was because they are not saving enough money for retirement,” McLean-Cobbin said.

Experts suggest you save at least 10 per cent of each paycheque, while the majority of the 2,000 survey respondents said they are saving 5 per cent, or even less in some cases.

“The majority of Canadian workers are continuing to live paycheque-to-paycheque, and 57 per cent said they would be in financial difficulty if they missed just one paycheque,” Cobbin said.

The majority of respondents said they would like to have at least $750,000 put away when they do call it quits. For many this appears to be hopeful thinking, as almost 75 per cent said they’ve saved less than a quarter of that goal.

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