IG Study Reveals Canadian Retirement Crisis as Pension Plans Fade
Event summary
- Only 48% of non-retired Canadians have an employer-sponsored pension plan, down from previous generations.
- Just 11% of non-retired Canadians know their required annual retirement income, while 49% are unsure.
- Only 33% of non-retired Canadians have a retirement plan and savings.
- 67% of Canadians have not stress-tested their retirement plans against major economic risks.
The big picture
IG's study highlights a structural shift in Canadian retirement planning, with the decline of employer pensions forcing individuals to take greater responsibility for their financial futures. This creates both challenges and opportunities for wealth managers like IG, which manages $158 billion in assets under advisement. The data suggests a significant market for financial advice services as Canadians struggle to navigate retirement planning without traditional pension safety nets.
What we're watching
- Advisor Demand
- How IG and competitors will capitalize on the growing need for financial advisors as retirement planning complexity increases.
- Regulatory Response
- Whether Canadian policymakers will introduce measures to address the retirement savings gap.
- Market Education
- The pace at which financial institutions can improve public understanding of retirement income tools like RRIFs and OAS.
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