Inflation’s impact on financial planning
Among the 63% of Canadians who say rising prices are limiting their ability to save for retirement, the top four ways they are adjusting their financial planning are:
- Cutting other spending to maintain current retirement savings levels
- Putting less into retirement savings
- Planning on working longer
- Putting off retirement savings completely
"Inflation is a major concern for Canadians, and the spike in prices as the economy emerged from the pandemic is a stark reminder rising prices can affect spending, investment and savings plans," Robert Kavcic, BMO senior economist, said in a statement.
"Inflation should always be a major consideration when saving and investing for retirement and if investors have concerns about how rising prices may impact their retirement savings, it may help to seek guidance from a financial professional."
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Get started todayRetirement woes
Canadians are contributing more than ever to their Registered Retirement Savings Plans (RRSP). This year, average RRSP contributions are on track to reach $7,447 — which marks a 14% increase over last year from $6,512 and above the pandemic high-water mark set in 2021 of $6,822.
For those hoping to save for retirement amid inflationary concerns, BMO recommends planning early, practicing discipline, contributing securities to an RRSP and seeking professional financial advice.
Survey methodology
The survey of 1,500 adult Canadians aged 18 and older was conducted online by Pollara from November 8 to 18, 2024.
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