Canadians are struggling to save for retirement, with many planning to push back the next phase of their life amid inflation and higher interest rates, according to a new survey from the Healthcare of Ontario Pension Plan.
Inflation has been slowly cooling in recent months, but at 4.4 per cent in April year over year it’s still more than double the central bank’s target rate of two per cent. The Bank of Canada last week raised its overnight rate to 4.75 per cent after several straight months of holding it steady, citing the risk of sticky inflation.
More than half of those surveyed aged 55 to 64 said if inflation keeps rising, they will have to push back their intended retirement date. Also, despite rising costs, almost 70 per cent of people surveyed said they would take lower pay in exchange for a better pension. Meanwhile, 78 per cent said they believe all employers should be required to contribute in some way towards pensions for workers.
I’m getting slowly closer to fifty and have been saving for a long time, but ever creeping inflation and interest is seriously hampering it. The loans I should have been able to pay off became almost unsustainable over the pandemic and now I have to throw everything at the interest and can barely touch the principle.
I’m still making it and I’m in the luckiest ten percent or so of the xennials. I’ll actually be able to retire. But if it’s hard for me, what does that say about the other 90%?