Canadians Feeling More Financially Prepared for Retirement: Scotiabank Study

TORONTO, ON--(Marketwired - May 05, 2015) - Scotiabank today released its most recent Investment Poll that shows that Canadians at all stages of their careers feel they are on track to meet their retirement goals. And, on the heels of the Federal Government's 2015 Budget, Canadians have greater options to save for their future.

On average, 6-in-10 Canadian future retirees (62%) responded they are comfortable that they are on track to achieve their retirement goals. Compared to the 2013 study, this figure is an increase from 55% who felt prepared to retire when their career comes to an end. The highest increase was found in the 55+ age group (77% in 2014 vs. 63% in 2013).

Key findings from the 2014 study were:

• Similar to 2013, just under three-in-ten (28%) Canadians say they have a written financial plan.

• Slightly fewer Canadian future retirees are concerned about having enough money to support their retirement (69% in 2014 vs 72% in 2013).

• 37% of future retirees indicated that they would be forced to rely on children or other relatives for financial assistance, down from 43% in 2013.

While Canadians polled cited lack of affordability as the number one reason for not investing more, this number decreased year over year -- from 64% in 2013 to 59% in 2014.

"Expert advice and a written financial plan can help customers manage affordability concerns to find ways to contribute to their retirement savings," says Mike Henry, Senior Vice President and Head of Retail Payments, Deposits and Lending at Scotiabank. "Our advisors help customers map their road to retirement with a customized plan that considers day-to-day cash flow, saving, borrowing, as well as investing strategies."

"The Federal Government's announcement that they have increased the annual contribution limit of the Tax Free Savings Account (TFSA) to $10,000 effective immediately enables Canadians to take advantage of greater savings opportunities that help them to become financially better off," continued Mr. Henry.

"It is critical for future retirees to ensure their investment portfolios are aligned with their stage in life, risk tolerance and income requirements," says Neil Macdonald, Managing Director of ScotiaFunds. "In the early stages of saving for retirement, growth strategies are important, but as retirement nears the focus should shift to protecting your savings through lower volatility investments."

Respondents to the annual Scotiabank survey who expect to retire in the future indicated the top sources of expected retirement income are:

• Personal savings held in RRSP/RRIF (59%);

• Government pension programs (58%);

• Savings outside of RRSPs/RRIFs (38%); and

• Personal employer sponsored pension plan (37%).

The study's findings show that the percentage of pre-retirees who expect to continue working after "officially" retiring from the workforce remained flat year over year at 60%. Eight per cent of respondents said that they have no plans to retire. The top three reasons respondents provided for working past retirement are:

• Staying mentally active (51% in 2014 vs 52% in 2013);

• Financial necessity (50% in 2014 vs 49% in 2013); and

• A need for social interaction (35% in 2014 vs 41% in 2013).

About the polling data
Scotiabank calculations are based on an online survey conducted by Nielsen for Scotiabank among 1,007 Nielsen panel members who intend to learn more about their saving and investment patterns. Data was collected from December 5 through December 18, 2014.

About Scotiabank
Scotiabank is Canada's international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia. We are dedicated to helping our 21 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking. With a team of more than 86,000 employees and assets of $852 billion (as at January 31, 2015), Scotiabank trades on the Toronto (BNS.TO) and New York Exchanges (BNS.TO). Scotiabank distributes the Bank's media releases using Marketwired. For more information, please visit www.scotiabank.com and follow us on Twitter @ScotiabankNews.