Current workforce getting nine-year head start
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Albertans are now starting younger when it comes to saving for retirement, according to new research from ATB Investor Services.
On average, Alberta residents currently in the workforce began saving for retirement at the age of 28. In contrast, already-retired Albertans started saving at an average age of 37.
That's giving the current workforce a nine-year head start on their retired counterparts.
"This research suggests that, over time, people have become more educated and more aware of the importance of saving for the future," said Chris Turchansky, president of ATB Investor Services. "One thing investors really need to be aware of, however, is how much money they'll need to retire comfortably at the age they're aiming for."
According to the company’s research, which involved 1,003 participants and took place in October 2016, 37 per cent of Albertans don't know how much they'll need to retire. One in five believe they'll need between $45,000 and $60,000 annually to retire in comfort.
To help them get to retirement, 56 per cent of Albertans have a registered retirement savings plan (RRSP). One-third of Albertans regularly contribute to an RRSP, while 19 per cent of those with an RRSP maximize their contribution limit every year.
Albertans' savings goals have remained consistent with past surveys, with retirement (52 per cent) maintaining the number one spot. Paying down debt, managing day-to-day finances, building an emergency fund and saving for a vacation round out the top five savings goals.
Half of Albertans said they are on track or ahead for both retirement savings and paying down debt. Among those behind in their financial goals, cost of living and unexpected expenses were the top reasons mentioned.
