News & Resources

Majority of Canadians Relying on CPP in Retirement

Jan. 31, 2014
1 mins
Cute seniors dancing in their living room

Nearly 90% of Canadians are counting on using the Canada Pension Plan/Quebec Pension Plan upon retirement.

An RRSP study from BMO indicates that almost one third will rely on the pension funds 'heavily' despite the fact that the average CPP payout is less than $600 a month.

The survey shows that 88% of respondents plan to use personal savings like RRSPs or tax-free savings accounts to help fund retirement, while 59% expect to get a part-time job to make ends meet. Half of those polled plan on raising cash by selling their homes or other property.

Many are counting on an inheritance (40%) or simply winning a lottery (34%), while 28% expect to get financial assistance from their children or other family members.

Financial advisors from BMO recommend having a diversified retirement nest egg, which can include the CPP, an RRSP, a work pension plan, a tax-free savings account and other forms of savings or income. They also point out that developing a personal retirement strategy is a much better bet than the one in 14 million chance of winning a big lottery prize.

Cliff Boodoosingh


Latest life insurance articles

Do you need life insurance? A primer for Canadians
Life insurance isn’t a one-size-fits all solution. But if you have dependents, it can be an important financial safety net for those you love.
Learn More
7 mins read
Why life insurance should be part of estate planning for new parents
Life insurance is one of the best ways new parents can protect their family and help loved ones in the event of your unexpected death.
Learn More
5 mins read
10 Myths About Life Insurance Busted – Some May Surprise You
You may be young with no kids and no mortgage. Life insurance is for someone older, who has dependents right? Wrong. Let’s debunk life insurance myths and learn why everyone needs some form of coverage.
Learn More
6 mins read

Subscribe to our newsletter

Stay on top of our latest offers, relevant news and tips!

Thanks for joining!

You'll be hearing from us shortly - stay tuned.