“Given the amount that the CPP or QPP pays out, Canadians should not rely on them as a primary source of income to fund their retirement,” says Chris Buttigieg, BMO’s senior manager of wealth planning strategy. “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 [regularly] contributing to an RRSP.” RSRP is Canada’s equivalent of a tax-favored individual retirement account.
The study also identified the sources of income Canadians plan to use to fund their retirement outside of the CPP/QPP:
- Personal savings such as RRSPs, TFSAs, etc. – 88 percent;
- Part-time job - 59 percent;
- Sale of home/property - 49 percent;
- Inheritance - 40 percent;
- Hoping to win the lottery - 34 percent, including 14 percent relying “heavily”;
- Support from family/children - 28 percent.
Regional Breakdown:
Region |
Relying on the CPP/QPP to fund their retirement |
Relying on personal savings to fund retirement |
Relying on winning the lottery to fund their retirement |
National |
89% |
88% |
34% |
Atlantic |
84% |
81% |
32% |
Quebec |
94% |
85% |
36% |
Ontario |
87% |
89% |
33% |
Prairies |
88% |
95% |
29% |
Alberta |
92% |
92% |
32% |
B.C. |
86% |
92% |
41% |