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Feb 24, 2014

Workers nearing retirement don’t know how much retirement income they will have - or need

One-third say CPP will be primary income source, but most don’t know the maximum amount: Survey

Most workers nearing retirement (aged 55-64) are confident they’ll have enough retirement income to maintain the lifestyle they want.

But many still don’t know how much retirement income they will need, nor how much their government and company pensions will provide, according to an Investors Group survey of 1,010 Canadian workers.

Sixty-nine per cent of Canadians nearing retirement age did not know what the maximum monthly payout for the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) and Old Age Security (OAS).

However, more than 80 per cent of this group said they plan to use these are a source of retirement income. One-third said these government pensions will be their primary income source.

Sixty per cent of workers said they will have an employer pension plan, and 37 per cent said it will be their primary income source.

But more than one-half of that group (55 per cent) did not know the monthly benefit they can expect from their plans.

Seven in 10 workers said they will have enough income for the cost of living in retirement, but 42 per cent did not know what they anticipate the cost of living to be.

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