TD survey shows changing employment trends are
impacting Canadians' confidence when it comes to
retirement
- One in five waiting to make more money before they start
contributing to retirement savings
- Forty-one per cent are not sure when they'll retire given their
job situation
- Seventy-six per cent wish they had made financial contributions
at an earlier age to feel more retirement ready
TORONTO, Jan. 15, 2019 /CNW/ - For many working Canadians,
the days of having one career with one organization have
disappeared. Instead, an increasing number of workers are joining
the "Flexforce" – a group that comprises gig workers, job jumpers
and postponed professionals, who are redefining what traditional
employment looks like. And as the face of Canada's workforce changes, so does the
ability to manage finances and plan for retirement.
According to a recent TD survey, nearly two-thirds (64 per cent)
of Flexforce Canadians anticipate needing to work into their senior
years because they won't have enough saved for retirement. More
specifically, nearly three-quarters of these same Canadians (72 per
cent) are finding it difficult to save for retirement, while four
in ten (41 per cent) are not sure when they'll retire given their
employment situation. This naturally leaves a large and growing
group of Canadians following unconventional career paths feeling
uncertain (47 per cent) and worried (34 per cent) about their
future, with only a small number (11 per cent) claiming to feel
secure about saving for retirement.
"Planning for retirement can be overwhelming in any
circumstance, but it becomes even more challenging when it's tied
to the uncertainty that accompanies Flexforce employment," says
Jennifer Diplock, Associate Vice
President, Personal Savings and Investing at TD Canada Trust. "An
increasing number of Canadians are choosing temporary or
non-traditional employment and are having to rethink retirement –
specifically what retirement will look like for them and what steps
they'll need to take in order to feel confident about achieving
their retirement goals."
When it comes to retirement goals, 55 per cent of Flexforce
Canadians say they are not able to save as much as they need to
each year to meet their goals, with over three-quarters (76 per
cent) wishing they made financial contributions at an earlier age.
Canadians report that the top three factors holding them back from
contributing to their retirement savings include day-to-day bills
and expenses (49 per cent), paying off existing debt (32 per cent),
and paying for their lifestyle (27 per cent).
"Today's changing workforce brings a number of variables and
unpredictability, so building a strong foundation can help steer
you in the right direction," says Diplock. "Many employers no
longer offer a pension plan and the onus now falls on employees to
not only self-fund their retirement, but to also determine how much
money they'll need and how to save for it. This shift in planning
for retirement can be daunting, which is why it's more important
than ever to have a personalized plan in place to help make your
retirement whatever you want it to be."
No matter what your job status, TD offers the following advice,
so you can feel confident as you plan for retirement:
- Plan. Whether you've been working for decades or are
just getting back into the workforce after a prolonged absence –
everyone has their own idea of what they envision their retirement
to look like, which means there is no one size fits all approach.
Once you've determined your goals, establish a retirement savings
plan to help you stay on track. A useful tool is the online TD
Retirement Calculator, which estimates how much you would need to
save to retire with the desired income you need for the retirement
lifestyle you want. Once you have a picture and plan for your ideal
retirement, take steps to turn that vision into a mission. For
example, meet with a financial advisor to help create and implement
a retirement plan and consider setting up automated contributions
into a retirement savings vehicle that will add up over time.
- Understand. Planning for retirement can be confusing, so
it's important to learn what retirement will entail and what
options are available to help get you there. Given the number of
variables and unpredictability you may experience in the Canadian
Flexforce, it's important to speak to a financial advisor to set up
a plan tailored for your specific needs and situation. It's also
key to understand your spending and saving habits so you can
readjust if needed. Tools like the TD MySpend app can provide
notifications of your spending transactions in real-time, which in
turn can provide insight into your financial habits so that
you can take more control over how you manage your money. You can
also access a variety of resources online or in-branch through a
financial advisor who can help answer your retirement planning
questions.
- Scan. In addition to monitoring your spending, you
should also keep close tabs on your retirement investments. While
it may not be necessary to check your portfolio daily, it's a good
idea to check in with your financial advisor at least once a year,
or whenever there's a major milestone in your life, like buying a
home or welcoming a new member into your family. Starting a new
business or taking on a permanent role could also be a good
opportunity to meet with your advisor to ensure your retirement
plan is still headed in the right direction.
About the TD Rethinking Retirement Survey
TD Bank
Group commissioned Environics Research Group to conduct a custom
survey of 1,101 Canadians aged 18–54, who identified as either a
Gig Worker, Postponed Professional or Frequent Job Jumper.
Responses were collected between November
16, 2018 and December 3,
2018.
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 branches and
serves more than 25 million customers in three key businesses
operating in a number of locations in financial centres around the
globe: Canadian Retail, including TD Canada Trust, TD Auto Finance
Canada, TD Wealth (Canada), TD
Direct Investing, and TD Insurance; U.S. Retail, including
TD Bank, America's Most Convenient Bank®, TD
Auto Finance U.S., TD Wealth (U.S.), and an investment in TD
Ameritrade; and Wholesale Banking, including TD Securities. TD
also ranks among the world's leading online financial services
firms, with more than 12 million active online and mobile
customers. TD had CDN$1.3 trillion in assets on October 31, 2018. The Toronto-Dominion Bank
trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
SOURCE TD Bank Group