Canadians believe they’ll need, on average, $1.54 million to retire, down from $1.67 million in 2023, according to a new survey by the Bank of Montreal.
The survey, which polled 1,500 employees, found three-quarters (76 per cent) are worried they won’t have enough money in retirement because of rising prices.
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Nearly two-thirds (63 per cent) believe rising prices over the past 12 months have impacted their ability to save for retirement. Among these respondents, cutting other spending to maintain current retirement savings levels was the No. 1 way they’re adjusting their financial planning, followed by putting less into retirement savings, planning on working longer and putting off retirement savings completely.
“Inflation is a major concern for Canadians and the spike in prices as the economy emerged from the pandemic is a stark reminder rising prices can affect spending, investment and savings plans,” said Robert Kavcic, senior economist at BMO, in a press release.
“Inflation should always be a major consideration when saving and investing for retirement and if investors have concerns about how rising prices may impact their retirement savings, it may help to seek guidance from a financial professional.”
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