Significantly fewer Canadians have saved for retirement in the past year, as inflation continues to rise. Although Canadians rank saving for retirement (50%) and affording the day-to-day expenses for their family (42%) as their top two financial priorities, just under half of employed Canadians (44%) have not set aside any money for retirement from 2022 to 2023.
How to start saving:
While it is apparent that Canadians will need an abundant retirement fund if they want to keep up with the trend of rising living costs, many believe it is too unattainable to start saving now. A saving vehicle you may not have thought of is your life insurance policy. If you currently contribute monthly to a term life insurance policy, consider switching to a whole life policy. It will force you to start saving with its automatic cash value portion. In addition to supplementing income loss in case of a tragedy, with premiums that will remain consistent no matter how much inflation grows. Your policy accrues a cash value that you can borrow against or withdraw while still alive. For long-term goals, such as retirement, a whole life policy is a safe investment option as it will only see returns regardless of the state of the economy. While saving nowadays is hard, it is not impossible. Speak to a financial advisor to assess your finances and find the correct saving vehicle for you
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