Poll reveals Albertans believe their savings will be the key to their retirement, but they need to pay equal attention to debt management
CALGARY, Oct. 6, 2011 /CNW/ - Albertans anticipate saving enough to retire at age 62, and most see themselves entering retirement without debt according to a new CIBC (TSX: CM ) (NYSE: CM ) poll conducted by Harris/Decima. The poll also shows that as Albertans draw closer to retirement they maintain their optimism about reaching their savings goals, running counter to the national trend in this area.
Findings of the poll include:
- On average, Albertans believe they will retire at age 62
- When asked why they would ultimately retire, Albertans are the most likely to believe their savings will be the key to their retirement with 44 per cent saying they will have saved enough to retire
- Only 18 per cent of Albertans believe they will carry some debt into retirement. However past CIBC research shows that among retired Canadians, 54 per cent hold some form of debt
"Our CIBC Poll shows that Albertans set out with a vision of building up their savings and eliminating debt to retire at a time of their choosing," said Christina Kramer, Executive Vice-President, Retail Distribution and Channel Strategy, CIBC. "Boomers in Alberta remain optimistic about reaching their savings goals, a good indication that Albertans have plans in place to save for retirement and remain confident their savings will allow them to retire on their terms."
Nationally, a key finding of the poll is that as Canadians near retirement, their optimism in reaching their savings goals for retirement drops. However, residents of Alberta appear to run counter to this trend, with little change in their savings optimism as they near retirement:
- For example, 45 per cent of Alberta residents aged 18-44 feel they will be able to choose to retire based on the savings they will accumulate over their working life
- As retirement nears, Alberta boomers (aged 45-64) maintain their optimism with 45 per cent of those in this age group believing they will reach their savings goal. Nationally, the percentage of baby boomers optimistic about reaching their savings goals for retirement drops to just 31 per cent.
Though Alberta residents may be optimistic about meeting their savings goals, past CIBC research shows that only 18 per cent of Alberta boomers are currently debt-free. The same poll indicated that among retired Canadians, 54 per cent hold some form of debt. Alberta residents hoping to reach their goal for a debt free retirement should take an integrated approach when looking at their financial plan.
"Your finances are all connected, meaning the more effective you are at debt management, the more funds you have available to accelerate savings for retirement," commented Ms. Kramer. "Sitting down with an advisor to map out a strategy that addresses both your savings and debt management plans is an integral step to achieving your long term savings goals and enjoying the retirement you want."
Average age at which Canadians expect to retire:
National Average - Age 63
Atlantic Canada - Age 62
Quebec - Age 62
Ontario - Age 63
Manitoba/Saskatchewan - Age 63
Alberta - Age 62
BC - Age 64
Percentage of Canadians, by age. who believe the main reason they will retire is that they will have saved enough money to do so:
Age 18-24 - 50 per cent
Age 25-34 - 43 per cent
Age 35-44 - 37 per cent
Age 45-54 - 35 per cent
Age 55-64 - 21 per cent
Percentage of Canadians by age who expect to carry some debt into their eventual retirement:
Age 18-24 - 13 per cent
Age 25-34 - 15 per cent
Age 35-44 - 24 per cent
Age 45-54 - 26 per cent
Age 55-64 - 31 per cent
Each week, Harris/Decima interviews just over 1000 Canadians through teleVox, the company's national telephone omnibus survey. These data were gathered in a sample of 1,116 employed Canadians and 683 retired Canadians between September 8th and 19th, 2011, among which a total of 125 employed Albertans were surveyed. A sample of this size has a margin of error of +/-2.9%, 3.7%, and 8.8% respectively, 19 times out of 20.
CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com.