Friday, August 1st12.3°C
22663
22437

CPP or the lottery for retirement

A majority of Canadians recently polled say they are relying on the Canada Pension Plan, many of them heavily, to get through retirement.

The Bank of Montreal survey found that 89 per cent said they would have to rely on the CPP or the Quebec Pension Plan when they stopped working.

Nearly a third — 31 per cent — said say they will count "heavily" on the government pension plan.

Meanwhile, 88 per cent of respondents said they would use personal savings like RRSPs or tax-free savings accounts to help fund retirement, while 59 per cent said they would likely take a part-time job.

Other options included the 49 per cent of respondents who planned on selling their homes or property for some cash.

Less than half — 40 per cent — were counting on an inheritance, while 34 per cent hoped to win a lottery. Twenty-eight per cent say they expect to get financial assistance from their children or other family members.

The online poll of 1,003 adults was conducted by Pollara between Nov. 18 and Nov. 22. The polling industry's professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.

Chris Buttigieg, a senior manager of wealth planning strategy at BMO, advises against relying solely on government pension plans in retirement, given that the average monthly CPP payment is less than $600 and the maximum tops out at not much more than $1,000.

"Rather, they should consider the CPP and QPP to be a supplementary component of their overall retirement income solution and focus on creating their very own personal pension plan by contributing to an RRSP on a regular basis," he said.

The best plan is to have a diversified retirement nest egg, which can include the CPP, an RRSP, a work pension plan, a tax-free savings account and other forms of savings or income.

Earlier this week, the Ontario government announced it was working on a new Ontario Pension Plan it expects to unveil in the spring. The province has appointed former prime minister Paul Martin to head a special advisory panel to oversee the creation of the pension plan and decide if it should be mandatory.

Ottawa has long asked the provinces to support Registered Pooled Pension Plans as an alternative to enhancing the CPP, but Ontario has rejected that idea because such plans would be voluntary.

The Canadian Press

COMMENTS WELCOME

Comments on this story are pre-moderated. Before they appear, comments are reviewed by moderators to ensure they meet our submission guidelines. Keep it clean, keep it civil, keep it truthful, stay on topic and be responsible. Comments are open and welcome for three days after the story is published. We reserve the right to close comments before then. Comments that appear on the site are not the opinion of Castanet, but only of the comment writer.



Read more Business News




Recent Trending




Today's Market
S&P TSX15342.85+12.119
S&P CDNX1001.730.21
DJIA16551.35-11.95
Nasdaq4380.763+10.99
S&P 5001933.01+2.34
CDN Dollar0.91690.00
Gold1310.00+6.70
Oil97.76-0.41
Lumber326.90+2.50
Natural Gas3.73-0.017

 
Okanagan Companies
Pacific Safety0.18-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.17-0.04
Cantex0.085+0.02
Anavex Life Sciences0.26-0.002
Metalex Ventures0.08-0.005
Russel Metals35.00-0.23
Copper Mountain Mining2.72-0.03
Colorado Resources0.20-0.005
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.03-0.005
Mission Ready Services0.150.00

 



22367

FEATURED Property
20091992181 Michelle Crescent
3 bedrooms 3 baths
$314,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Jobs, jobs, jobs galore

On March 6, 2010 a bridge in Turku, Finland bent 56 inches (143 centimeters) due to structural failures of both piers. No one was injured. The bridge had to be demolished 4 months later. Our infrast...


The rewards of listening

Eighty percent of our success in learning from other people is based on how well we listen. Other people’s experience can be enormously helpful. With it we can often overcome time restraints and...


Take charge of your debt

Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...

_








Member of BC Press Council