February 15 is Pension Awareness Day at the Financial Services Regulatory Authority of Ontario (FSRA).
FSRA and the CIA have a common vision of achieving financial security for Canadians, and the recent news release from FSRA underscores the pressing need for concerted action on promoting financial security and retirement readiness in this country. Through targeted outreach initiatives, educational campaigns and collaborative partnerships, Canadian actuaries can play a pivotal role in equipping individuals with the tools and knowledge they need to navigate the complexities of retirement planning.
FSRA’s poll results shed light on the situation: amid the challenges posed by escalating living expenses and economic uncertainty, retirement planning often takes a backseat for many Canadians. With a staggering 81% of respondents expressing heightened concerns about meeting immediate necessities, it is evident that a paradigm shift is necessary to prioritize long-term financial preparedness.
Andrew Fung, FCIA and Acting Executive Vice President of Pensions at FSRA, highlighted the importance of initiating savings early and maintaining consistency in retirement planning efforts:
“Retirement can seem like a lifetime away, especially when you are dealing with higher grocery bills and rising living expenses… we’re encouraging people to take a moment and think about the quality of life they want after they stop working. Saving is the key and setting aside even a little now can leave you better off in the future.”
The statistics revealed in FSRA’s poll serve as an important reminder of how actuaries can play a role in bridging this knowledge gap and helping individuals make informed decisions about their financial futures.
The poll found that:
- 44% of respondents said that the high cost of living is hindering them from starting to save for retirement.
- 20% of people think they will never be able to retire.
- Only 17% believe their quality of life will be better when they retire – 39% believe it will be the same and 43% believe it will be worse.
- 56% do not know how much money they will need to save to retire comfortably.
- 27% have not developed a plan to ensure they have enough money for retirement.
- 88% agree that more should be done to encourage people to save for retirement.
- 91% of people agree that more should be done to educate people about pensions.
- 60% believe the right age to start thinking of retirement and setting money aside is in your 20s.
- 61% know more about their favourite TV show than the benefits of their pension plan.
Visit FSRA’s website for information about Pension Awareness Day and resources for retirement planning to help you and your organizations, clients and networks continue the journey toward financial security for all Canadians.
