High-net worth Canadians say require, on average, CDN $2.3 million to be able to live out their ideal retirement lifestyle.
BMO Harris Private Banking discloses this finding in a new survey conducted by Pollara. The fourth in a series of studies by BMO Harris Private Banking examining trends among the affluent in Canada, the survey polled 305 Canadians with at least $1 million in investable assets.
The above amount is two-and-a-half times more than the $908,000 average that Canadians in the aggregate (irrespective of income level) identify as the optimal amount required for retirement.
“Regardless of your income or the amount of wealth you possess, it’s important to understand that saving for retirement is not a one-size-fits-all proposition in terms of the ideal amount you need to save,” says Yannick Archambault, vice president and COO, BMO Harris Private Banking. “How much you require will be determined largely by what kind of lifestyle you envision for yourself, including where you plan to live, how much you want to travel and other factors that could require funding. What’s important is that you give serious thought to how you want your retirement to look and then work with a financial professional to create a financial plan that includes a retirement savings and investing component.”
The study also finds that the vast majority of high-net worth Canadians are upbeat about saving for retirement, with 95 percent stating that they are confident about their ability to achieve their ideal retirement lifestyle (versus 69 percent of Canadians overall).
The study also finds that 86 percent of high-net worth Canadians say they are quite comfortable with their current savings and investment plan. Further, 70 percent expect stocks to generate the most solid returns over the next five years, well ahead of real estate (39 percent), bonds (24 percent) and cash (19 percent).
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