Gig economy impacts retirement saving plan of Canadians: TD survey

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The gig economy and the changing face of employment is also impacting the way Canadians save for their retirement.

Forty-one per cent are not sure when they’ll retire given their job situation.

Seventy-six per cent wish they had made financial contributions at an earlier age to feel more retirement ready.

For many working Canadians, the days of having one career with one organization have disappeared. Instead, an increasing number of workers are joining the “Flexforce” – a group that comprises gig workers, job jumpers and postponed professionals, who are redefining what traditional employment looks like. And as the face of Canada’s workforce changes, so does the ability to manage finances and plan for retirement.

According to a recent TD survey, nearly two-thirds (64 per cent) of Flexforce Canadians anticipate needing to work into their senior years because they won’t have enough saved for retirement. More specifically, nearly three-quarters of these same Canadians (72 per cent) are finding it difficult to save for retirement, while four in ten (41 per cent) are not sure when they’ll retire given their employment situation. This naturally leaves a large and growing group of Canadians following unconventional career paths feeling uncertain (47 per cent) and worried (34 per cent) about their future, with only a small number (11 per cent) claiming to feel secure about saving for retirement.

With more employers than ever not offering pension plans, employees are left to plan their retirement on their own.

Here are a few tips:
• Plan. Once you’ve determined your goals, establish a retirement savings plan to help you stay on track. A useful tool is a retirement calculator, which estimates how much you would need to save to retire with the desired income you need for the retirement lifestyle you want.

• Understand. Planning for retirement can be confusing, so it’s important to learn what retirement will entail and what options are available to help get you there. Some banking tools and apps can provide notifications of your spending transactions in real-time, which in turn can provide insight into your financial habits so that you can take more control over how you manage your money.

• Scan. In addition to monitoring your spending, you should also keep close tabs on your retirement investments. While it may not be necessary to check your portfolio daily, it’s a good idea to check in with your financial advisor at least once a year. -CINEWS

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