Inflation: Canadians' retirement security at risk

Inflation: Canadians’ retirement security under threat< /p> UPDATE DAY

The new rise in inflation and the rise in interest rates have direct consequences on the cost of living, but also on the pensions of Canadians who are increasingly threatened, according to a recent survey by Abacus Date and Healthcare of Ontario Pension Plan (HOOPP). 

Nearly 55% of Canadians surveyed for this survey said they were worried about not have enough money for their retirement, which is 6% more than last year.

The day-to-day cost of living (66%), inflation (62%) and housing affordability (56%) are among other concerns that impact retirement security.

< p>“Retirement and savings concerns have been high every year since we conducted the Retirement in Canada Survey, and they are now exacerbated by rising interest rates and inflation” , Steven McCormick, Senior Vice President, Plan Operations, HOOPP said in a statement Thursday.

“Well over half of Canadians expect these factors to cause them financial hardship and force them to retire later. At the same time, financing retirement by selling a home is becoming a less viable strategy for many people. This raises the question of whether Canada's younger generations are heading for a perfect storm when it comes to retirement security,” he added.

While 32% of respondents mentioned that they hadn't saved anything for retirement, 38% said they hadn't put any money aside in the past year.

And so close to 45% of owners plan to rely on the sale of their home for their retirement, this prospect becomes increasingly risky in the context of the current real estate market.

“The general outlook for retirement security in Canada is getting worse. darken,” said David Coletto, CEO of Abacus Data.

The survey was conducted online with 1,716 Canadians over the age of 18 from April 21-27, 2022.