TORONTO, ON - February 06, 2014 /CNW/ - According to Scotiabank's Annual Investment Poll, just over half of Canada's future retirees (55%) are comfortable that they are on track to achieve their retirement goals, on par with 2012 results (53%). The comfort level in achieving retirement goals jumps to 75% for those future retirees who say they have a written financial plan. Looking at all Canadians, just under 3-in-10 (27%) have a written financial plan versus 28% in 2012.

When it comes to funding for retirement, the poll revealed a downward trend in the reliance on the traditional sources of income: 55% savings (versus 60% in 2012 and 63% in 2011); 53% government (versus 57% in 2012 and 60% in 2011); 50% RSP contributions (versus 65% in 2012 and 70% in 2011); and 47% work pension (versus 52% in both 2012 and 2011). Relying on inheritance to fund retirement also went down to 18% from 22% in 2012, as did selling one's home (17% versus 22% in 2012) and income from investment property (12% versus 15% in 2012).

Similar to previous years, nearly six-in-ten (58%) future retirees expect to work after "officially" retiring from the workforce (versus 62% in 2012 and 2011). The most common given reason for working after retirement continues to be the desire to remain mentally active (52%), followed by financial necessity (49%). 

Additional facts:

• For Canadians, retirement means having time to enjoy life and relax (51%), or to pursue interests, goals, activities, and dreams (45%), not having to work anymore (44%), and having the freedom to do what they want (41%).
• Year over year more Canadians who are expecting to retire are concerned about not having enough money to support their retirement, 72% in 2013, 68% in 2012 and 67% in 2011.
• Over the past five years, Canadians who expect to retire in the future have saved an average of $22,731 for retirement -- an amount that has been trending downward ($24,469 in 2012 and $31,824 in 2011).
• Affordability continues to be the primary barrier Canadians face towards investing more (64% in 2013 and 2012 and 59% in 2011), while 20% feel they already invest enough (versus 19% in 2012 and 24% in 2011).

Quotes:

"It's no surprise that for most of us, retirement means being able to enjoy life and have the time and the freedom to do what matters most, so it is concerning to see continued challenges with affordability of saving and a downward trend in the actual amount saved," says Mike Henry, Senior Vice President of Retail Payments, Deposits and Lending at Scotiabank. "What's also clear is that of those who feel they are on track to meet their financial goals, the majority have a written financial plan. We encourage the 73 per cent of Canadians who do not have a written financial plan to meet with an advisor who can help them create a personalized plan and identify opportunities to help them get ahead financially, especially with their retirement savings."

"Canadians of every age are faced with difficult choices when it comes to allocating their cash flow," says Mike Newton, ScotiaMcLeod Director, Wealth Management. "Market volatility, employment numbers and concerns with debt tethered to the possibility of rising interest rates are impacting attitudes and behaviors. In thinking about retirement, investors need to work with a financial advisor to assist them in crafting a plan that can help capture their individual needs, concerns, and goals. This can result in a dependable and consistent approach in investment management and cash management, as well as in banking, lending, liquidity, estate planning and overall wealth structuring."

About the polling data
This study was conducted online for the third consecutive year using Harris/Decima's online panel. A total of 1,029 completed surveys were collected from a random sample of panel members across Canada. The study was conducted from November 12, 2013 to November 27, 2013.

About Scotiabank
Scotiabank is a leading financial services provider in over 55 countries and Canada's most international bank. Through our team of more than 83,000 employees, Scotiabank and its affiliates offer a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking to over 21 million customers. With assets of $744 billion (as at October 31, 2013), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). Scotiabank distributes the Bank's media releases using CNW. For more information please visit www.scotiabank.com.

BACKGROUND

REGIONAL BREAKOUTS

* Response list changed in 2012.

Media inquiries:

Kate Simandl
Scotiabank Media Communications
416-866-6218
kate.simandl@scotiabank.com