Retirement – Ready or Not?
An interesting piece on retirement savings from CIBC. It highlights the huge increase in unused RRSP contribution room in recent years, and the widening contribution gap between higher and lower income Canadians.Â As of 2005, the median total asset value of RRSPs held by pre retirement persons aged 55-65 was just $60,000 – hardly enough to secure a decent standard of living post retirement.Â Over the 1999 to 2005 period RRSP contributions have fallen for all but the highest income group (defined as those making more than $80,000.) An estimated 2.5 million households aged 35 to 64 have no retirement savings at all.
Clearly RRSPs are not going to fill the gap as defined benefit pension plan coverage continues to erode sharply.