Nearly two-thirds (61 per cent) of Canadians say they’re afraid of running out of money in retirement, according to a new survey by the Canada Pension Plan Investment Board.
The survey, which polled more than 4,700 Canadian adults, found more than two-thirds (67 per cent) of employees aged 28 to 44 are afraid they’ll run out of savings. Women (66 per cent) were more likely than men (56 per cent) to hold this view.
Almost three-quarters (73 per cent) of respondents said they’ll likely rely on, or currently rely on, Canada Pension Plan payments for part of their retirement income.
Read: Half of Canadian employees behind in retirement savings: survey
The survey also found that Canadians with a financial plan are less concerned about outliving retirement savings. Among non-retirees, having a plan was the top reason why they aren’t afraid of running out of retirement income.
On average, respondents said they’ll need $900,000 in retirement, or a yearly retirement income of $55,000, up from $700,000 and $50,000, respectively, in 2023.
“Based on our survey, running out of money in retirement is a real worry for Canadians, which is understandable given life expectancy is on the rise,” said Michel Leduc, senior managing director and global head of public affairs and communications at the CPPIB, in a press release.
“The younger generation is particularly stressed about their finances. This underscores the importance of building a solid understanding of your personal finances and seeking resources to improve financial literacy to help you manage money more effectively.”
Read: Survey finds 44% of Canadian pre-retirees have less than $5,000 in savings