More than half of Canadians feel they are lagging behind in retirement savings, according to a new survey from tax preparation firm H&R Block Canada.
Nearly half (52%) of Canadians surveyed say they are not ready to retire. Because I don’t have enough money left to save at the end of the month, and I plan to work part-time after retirement. According to research.
“Until recently, the traditional image of retirement was for Canadians to ‘take off their hats’ around age 65 and celebrate the end of full-time employment,” said Peter Bruno, president of H&R Block Canada. said in a news release earlier this year. Month. “What we are seeing now is a dramatic evolution in the vision of retirement. It is being accelerated by the economic environment.”
50% of Canadians surveyed said they plan to have a “gig job” to earn income when they retire, and 36% of respondents aged 18 to 54 said they plan to retire I don’t think so.
However, some respondents are more optimistic, with 44% saying they expect to retire earlier than the current average retirement age. According to Statistics Canada I am 64 years and 6 months old.
And 46% say they are satisfied with their retirement strategy despite the current economic uncertainty.
When it comes to tax savings plans, including RRSPs and TFSAs, 56% of Canadians report having an RRSP and 6% say they will have one in the future. 55% say they need a better understanding of tax-friendly retirement savings options.
The percentage of Canadians with TFSA is as low as 54%. 6% plan to establish one.
According to the survey, 37% of Canadians participate in an employer-sponsored registered pension plan, and 19% say they are dependent on a government-sponsored retirement plan.
However, 65% of respondents said they are likely to reduce their investment in TFSA or RRSP this year given the rising cost of living. Fewer people (32%) feel they are saving enough money each month for retirement.
“There is no one-size-fits-all retirement plan or strategy for Canadians, but it’s important to familiarize yourself with your options and how tax-friendly savings plans work regardless of your personal circumstances.” When it comes to tax return timing, it’s also important to understand the changes that may impact how we maximize tax returns and minimize taxable income.”
According to H&R Block Canada, these are the main changes this tax season related to retirement savings plans.
- The tax year RRSP limit has been increased to $30,780, allowing Canadians to contribute up to 18% of their income.
- The TFSA contribution limit has been increased to $6,500.
- Canadians age 65 and older with taxable income over $81,761 must repay a portion of the OAS.
- As of July 2022, seniors aged 75 and over will automatically receive a 10% price increase as part of CRA’s new affordable pricing plan.
- Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) increased by 2.7%.and
- Self-employed individuals in Canada are required to account for both employer and employee contributions, so the maximum CPP contribution this year is $6,999.60 and the maximum QPP contribution is $7,552.20.
Coverage for this article was paid for through The Afghan Journalists in Residence Project funded by Meta.
