Comfortable retirement out of reach for many employees – report

While Canadians nearing retirement age have seen a doubling in the median value of both their assets and net worth since 1999, the prospect of a comfortable retirement remains out of reach for many employees, according to a new report by the C.D. Howe Institute.

It found a quarter of Canadians aged 45 to 64 have no private retirement assets. Among Canadians who aren’t participating in employer-sponsored pension plans, their median wealth accumulations in registered retirement savings plans and tax-free savings accounts remains low.

In addition, the average Canadian must now save more money for retirement due to the decline in interest rates and increases in life expectancy, said Baldwin. “Improvement in the median wealth accumulation of Canadians approaching retirement age is good news. But its ability to translate into higher retirement income will be tempered by the higher costs of a dollar of annuity income.”