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Canadians believe they will need to save up $1.7 million to retire, up 20 per cent from 2020, according to a study published by BMO Financial Group on Tuesday.
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“While the anticipated headwinds in 2023 will understandably prompt concerns about how inflation and interest rates will affect our finances, Canadians remain resilient and are taking proactive measures to protect and invest in their retirement nest egg,” said Nicole Ow, the head of retail investments at BMO.
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BMO said 74 per cent of those surveyed said they are concerned about how current economic conditions will affect their financial situation, while 59 per cent say it is making them less confident of meeting their retirement goals.
Inflation hit a four-decade high of 8.1 per cent in the summer of 2022 but fell to 6.3 per cent in December and is expected to decline by the end of this year, according to BMO Economics. The sharp increase in CPI in 2022 exceeded wage gains and resulted in a significant loss of most families’ purchasing power, it said.
The BMO survey, conducted by Pollara Strategic Insights, surveyed 1,500 adult Canadians online between Nov. 4 and 7, 2022. The margin of error for a probability sample of this size is ± 2.5 per cent, 19 times out of 20.
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