National Savings Rate Has Declined
Canadian personal savings rate, as a monthly percentage of disposable income (1)
Retirement savings are meager
A declining savings rate is bad news – especially for those who are approaching retirement.
Just look at the retirement savings of Canadians aged 55 to 64. As of the last census, only 13% of these households have more than $500k in their retirement portfolios. 68% have saved less than $50K.
More troubling: our recent survey of Canadian investors found that 19% of people who are less than a decade away from retirement haven’t saved a dime. (2)
Retirement Assets – Canadian Households Ages 55-64 (3)
These charts are for illustrative purposes only and do not reflect the performance of any Franklin Templeton fund.
Sources:
1. Statistics Canada, as of December 31, 2018.
2. 2018 Franklin Templeton Retirement Income Strategies and Expectations (RISE)
3. Investor Economics (now a division of Strategic Insight) based on their Investor Economics Household Balance Sheet Report—Canada 2017 (data through December 2016)