Nearly half (46 per cent) of Canadian employees say they prioritize spending on their current lifestyle in place of saving for retirement, mainly due to paying off debts (38 per cent) or preferring to enjoy their life now (18 per cent), according to a new survey by IG Wealth Management.
The survey, which polled more than 1,500 employees, found eight in 10 (80 per cent) said the rising cost of living makes it difficult to save for retirement and more than half (56 per cent) said they’ve put off saving due to financial pressures.
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While almost half (47 per cent) of employees said they expect to retire before age 65, a third said they anticipate working later to afford basic living expenses, supplement income or maintain social connections.
On average, non-retired Canadians allocate 12 per cent of their income for retirement, but spend 67 per cent on basic living expenses and 20 per cent on leisure activities.
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