Your Financial Picture

Even if you missed out on the prime time—January—for getting a start on your financial resolutions for 2018, there’s still time to make sure your actions this year align with your long-term financial goals.

It’s important to take a look at your financial picture and make changes, especially if you’re nearing retirement and you know you’re not on track.

And if that’s the case, you’re not alone.

A CBIC poll (http://bit.ly/2BA8M2i), released in February, shows that people think $756,000 is the average amount that Canadians think they’ll need in order to fund the retirement lifestyle they’d like.

Yet, among those nearing retirement or on the cusp—those aged 45 to 64—of it, 32 percent haven’t saved anything for retirement. Among those with retirement money stashed away, the average value of their fund is $345,000, though nearly half (49%) have saved less than $250,000.

Here’s some data on how Canadians are faring when it comes to taking the steps —like knowing what income retirement needs will be and making regular deposits into retirement accounts— needed to have a shot at a financially healthy retirement.

How Canadians who are not currently retired or semi-retired describe their retirement savings plan: All Men Women 18-34  35-54 55+
I have a formal and detailed plan that describes my desired retirement lifestyle, the income I will need and I save regularly to achieve that goal 10 % 13 % 8 % 8 % 11 % 14 %
I have a good idea what my income needs will be and make regular contributions, but I don’t know if I’m saving enough 16 % 19 % 14 % 13 % 16 % 24 %
I make regular deposits to my retirement savings account(s), but I don’t know what my income needs will be and I don’t know if I’m saving enough 21 % 21 % 21 % 23 % 21 % 14 %
I don’t know what my retirement income will be, but I try to put money aside towards retirement when I can 16 % 15 % 16 % 20 % 13 % 12 %
I know I need to save for retirement, but I’m not able to save 22 % 19 % 25 % 16 % 25 % 27 %
I haven’t thought about retirement and I have no savings dedicated to retirement 15 % 14 % 17 % 20 % 14 % 8 %

Prospective Buyers’ Motivators

If you’re planning to sell your home this year, Canada Mortgage and Housing Corporation’s (CMHC) 2018 Prospective Home Buyer Survey (http://bit.ly/2GoHYBg) gives you a sense of what’s going on with prospective buyers.

CMHC talked to first-time buyers, previous owners, and current owners about things like their housing expectations, home purchase drivers, and concerns.

Here are three key findings.

  1. Key motivators. Improved accessibility (physical obstacles and barriers) and investment opportunity were top motivators among all three groups. The desire to stop renting was a top motivator for both first-time buyers (65%) and previous owners (60%).
  2. Move-in ready. First-time buyers (43%), previous owners (44%), and current owners (48%) all say an existing move-in-ready home is their top choice. But some are willing to buy a property that requires renovation. That option appeals to 14% of first-time buyers, 11% of previous owners, and 7% of current owners.

Some want brand new homes, including first-time buyers (19%), previous owners (21%), and current owners (32%).

  1. Home purchase prices. More than half of first-time buyers (54%) and previous owners (54%) plan to spend under $300,000 to buy a home, and about 25% intend to spend between $300,000 to just under $500,000.

But just 33% of current owners are planning to spend under $300,000, and 34 percent are looking for options over the half-million dollar range.