Vancity Credit Union

Vancity Credit Union

February 13, 2015 08:30 ET

Report: People in Vancouver and Victoria Will Need to Work Longer to Retire

Three Out of Four Under 45 Unable to Retire If They Don't Increase RRSP Contributions

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 13, 2015) - People living in Vancouver and Victoria will need to work longer than residents of other Canadian cities to retire, according to a new report by Vancity credit union.

The report, Falling Behind: Retirement Realities in B.C.'s Two Largest Cities, indicates that if people start making the average Canadian RRSP contribution at age 25, it will take them three to four years longer to save for retirement in Vancouver compared to Toronto or six to seven years longer compared to Winnipeg.

The difference between cities is driven by a higher cost of living, which requires a higher retirement income to maintain a similar lifestyle in Vancouver and Victoria compared to other Canadian cities.

The statistics on RRSP contributions of people under 45 in Vancouver and Victoria are concerning:

  • more than 75% do not contribute to RRSPs
  • their RRSP contributors are dropping faster than the Canadian average, and
  • their average annual RRSP dollar contribution is dropping.

Without change, retirement may be out of reach for younger British Columbians. Three out of four people under 45 will be unable to retire if they don't increase their RRSP contributions.

The good news is that you can successfully plan for your retirement. To help deal with retirement and other money challenges, Vancity has launched the Good Money Plan™ as an accessible way for people to get financial advice and guidance. The plan looks at a member's entire financial situation including their debt, savings and investments.

Through a four-step planning process, Vancity advisors focus on understanding members' dreams for the future, giving personalized financial advice to achieve those dreams, and following up to provide support and encouragement.

Quote

Sophie Salcito, investment advisor at Vancity

"The old adage is work hard to play hard, but now it's more like work longer to hopefully play in retirement. The good news is that people can achieve their retirement goals if they get started now."

About Vancity

Vancity is a values-based financial co-operative serving the needs of its more than 501,000 member-owners and their communities through 58 branches in Metro Vancouver, the Fraser Valley, Victoria and Squamish. As Canada's largest community credit union, Vancity uses its $17.5 billion in assets to help improve the financial well-being of its members while at the same time helping to develop healthy communities that are socially, economically and environmentally sustainable.

Tweet us @vancity and connect with us on facebook.com/Vancity.

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