Saving for retirement is a choice. And there are apps to help you get started and on the right path
Canadians who have a workplace pension plan known as a defined benefit (DB) plan are relatively lucky compared to workers who have other retirement savings vehicles. In 2017 more than 4.2 million Canadian workers were covered by a DB pension plan and almost 1.2 million were covered by a defined contribution (DC) plan, according to Statistics Canada data. And there are other workplaces that offer contributions to group RRSPs or TFSAs.
What about the Canadians who have no workplace retirement savings options? They will need to save income on their own if they want to have a financially secure life after leaving the workforce. Currently, the retirement savings statistics paint a less than optimistic picture. A 2018 CIBC poll of Canadians indicated that almost one-third (32%) of Canadians nearing retirement (between the ages of 45 and 64) have saved nothing. These are the best earning years and the ones closest to retirement.