Majority still say they are on track for the retirement lifestyle they want
Canadian workplace plan participants expect government benefits to cover 21.5 percent of their retirement income, less than half the 40.7 percent retirees report drawing from the Canada Pension Plan or Quebec Pension Plan and Old Age Security.
BlackRock brought its Read on Retirement report to Canada for the first time in October, and found 61 percent of participants believe they are on track to retire with the lifestyle they want.
Twenty-four percent said they were not on track and 15 percent were unsure. Sixty-eight percent worry about outliving their savings.
Participants expect employer-sponsored accounts to provide 22.5 percent of retirement income, against the 11.4 percent retirees reported.
Defined benefit pensions came in at 11.1 percent expected versus 17.7 percent reported, part-time employment income at 9.5 percent against 1.2 percent, and real estate income or home equity at 7.3 percent against 0.3 percent.
Government benefits and pension income together accounted for 58 percent of the retirement income reported by surveyed retirees, following earlier figures on Canadian pension participation and saving.
Katherine Tweedie, Canada country head, and Nick Nefouse, global head of retirement solutions, wrote in the report's foreword that confidence is "not the same thing as feeling secure."
Seventy-four percent of participants said they struggle to understand how today's savings will support them in future, BlackRock found, and 65 percent said they are unsure how to calculate what they will need to spend in retirement.
Eighty-three percent pointed to retirement spending and withdrawal-planning tools as what would help.
Eighty-one percent cited greater access to a financial professional.
Seventy-eight percent said they would save more if they were more confident their investment strategy could reach their goals, according to the report, and 92 percent said they would feel more at ease if their investment approach evolved over time.
Automatic reallocation to age-appropriate investments drew support from 78 percent.
Preference for professional management rose from 43 percent among Gen Z to 60 percent among boomers, and 80 percent said they were satisfied with the investment options in their workplace plan.
Seventy-two percent of participants in households earning $150,000 or more said they were on track, the survey found, compared with 54 percent in households earning less than $75,000.
Seventy percent of Gen Z participants said they were on track, against 64 percent of millennials and 51 percent of both Gen X and boomers.
Among Gen X, 67 percent said they worry about outliving their savings.
BlackRock reported that 77 percent of all participants said high inflation and market volatility had made it harder to stay on track.
Seventy-four percent expect they may need to contribute less to their retirement plan over the next 12 months, citing rising living expenses at 62 percent, supporting family members at 45 percent and paying off existing loans at 43 percent.
Working-age participants said they expect to retire at 64.
Retirees in the survey reported retiring closer to 60, with 21 percent citing reaching benefit eligibility, 16 percent health-related reasons and 15 percent job loss.
Among retirees, 82 percent were confident their savings will support them throughout retirement, 54 percent said the cost of living has been higher than anticipated, and 40 percent said they have adjusted their spending to make their savings last.
