Retirement Planning

A Bumpy Road To Retirement

43% of Canadians are not confident they will be able to retire when they initially planned

A new TD survey reveals there’s hope: 90% of Canadians with a personalized financial plan believe it is helping them reach their financial goals.

TORONTO, Dec. 5, 2023 /CNW/ – In a Canadian economy marked by high interest rates, and inflation, being able to set and achieve your financial goals is more important than ever.

A recent TD survey found that 43 per cent of Canadians are not confident they will be able to retire when they initially planned. More concerns about Canadians’ financial futures were expressed in the survey’s findings:

  • Among the survey’s findings, it was revealed that the vast majority of Canadians (71 per cent) cited a high cost of living and inflation as a challenge that made accomplishing their financial goals more difficult in the past year
  • Almost half of Canadians (47 per cent) have not made or are not planning to make any contributions to their investments this year, with 46 per cent citing it was because their cost of living has increased, up from 44 per cent in 2022.

 

  • When it comes to financial planning, the survey also found that 47 per cent of Canadians do not feel confident in their level of investment knowledge.

“Canada’s current economic climate continues to impact how Canadians approach their finances and investments, and that’s why it’s more important than ever to seek trusted advice,” said Pat Giles, Vice President, Saving & Investing Journey at TD. “In challenging economic conditions, the right financial support can make a significant difference, especially when balancing competing saving and spending priorities. Our survey shows that 90 per cent of Canadians with a personalized financial plan believe it is helping them reach their financial goals.”

The Survey also revealed the majority of Canadians (54 per cent) have not established a personalized financial plan in the past year that is tailored to their goals and, among those without a personalized financial plan, nearly four-in-ten (38 per cent) would feel more confident in their ability to meet their financial goals if they had one. It is never too late, or too early, to start investing in your future. Knowing where and how to start is key.

Understanding Your Options

With tax season upon us, and with more than one third (39 per cent) of Canadians not confident they know when to contribute to a Registered Retirement Savings Plan (RRSP) versus Tax-Free Savings Account (TFSA), a TD Personal Banker can help Canadians understand the different savings options available to them, help develop a plan that suits their financial goals, as well as educate Canadians on how they can start investing and expanding on their financial knowledge.

  • RRSPs are tax-deferred registered plans that allow investors to grow their savings for retirement. Adding funds to your RRSP within your contribution room before the annual contribution deadline (February 29, 2024) could help reduce your taxable income, potentially resulting in savings on your tax bill or a tax refund.
  • A TFSA, on the other hand, is a registered savings plan in which income earned on the amount invested in qualified investments is not taxed and no tax is payable on any amounts withdrawn.

For both accounts, automatic contributions or Pre-authorized Purchase Plans can be set up to alleviate the hassle that comes with manually managing an investment.

In challenging economic conditions, the right financial support can make a significant difference, especially when balancing competing saving and spending priorities...

Building Your Confidence

In addition to providing advice on different savings opportunities, TD Personal Bankers can help Canadians set or review their financial goals in the face of a challenging economy. Part of that guidance could include helping customers get their financial house in order, build their savings, and keep their focus on the bigger picture.

“Whether you’re saving for a short-term goal or retirement, there is no ‘one-size-fits-all’ approach on your saving and investing journey,” added Giles. “It’s a myth that you need to have a certain dollar figure to start prioritizing your financial future and a TD Personal Banker can help you create the right plan based on your unique needs and the amount you would want to contribute. No amount is too small to start saving or investing.”

TD offers tools and resources to help customers establish their financial goals, set personalized financial plans, and track their progress as they work towards achieving them:

  • TD Personal Bankers are available across the country to offer financial advice and help customers with decisions around money matters, personal finances, and investments to help achieve their unique financial goals.
  • Using TD Goal Builder, a Personal Banker can provide customized investment advice to help customers work toward their financial goals, whether they’re saving for retirement, a child’s education, a home or another major purchase.
  • TD Financial Planning Direct offers end-to-end wealth experience delivered remotely. From opening accounts to developing a comprehensive financial plan, customers can take charge of their financial well-being, wherever they are.
  • The TD Ready Advice Hub has information and articles available on a variety of financial topics and investing.

 

 

 

About the TD Survey
This Maru Public Opinion survey was conducted on behalf of the TD Bank Group and undertaken by the sample and data collection experts at Maru/Blue. From October 23-24, 2023, the online survey ran among 1,524 randomly selected Canadian adults who are Maru Voice Canada panelists. The findings are weighted to reflect the Canadian population and a comparative probability sample of this size has an estimated margin of error (which measures sampling variability) of ±2.6%, 19 times out of 20.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by assets and serves over 27.5 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America’s Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world’s leading online financial services firms, with more than 16 million active online and mobile customers. TD had $1.96 trillion in assets on October 31, 2023. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.
TD Mutual Funds and the TD Managed Assets Program portfolios are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank and are available through authorized dealers. ® The TD logo and other trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.