By Linda Nguyen, The Canadian Press
TORONTO – A majority of Canadians recently polled say they are relying on the Canada Pension Plan, many of them heavily, to get through retirement.
The Bank of Montreal survey found that 89 per cent said they would have to rely on the CPP or the Quebec Pension Plan when they stopped working.
Nearly a third — 31 per cent — said say they will count “heavily” on the government pension plan.
Meanwhile, 88 per cent of respondents said they would use personal savings like RRSPs or tax-free savings accounts to help fund retirement, while 59 per cent said they would likely take a part-time job.
Other options included the 49 per cent of respondents who planned on selling their homes or property for some cash.
Less than half — 40 per cent — were counting on an inheritance, while 34 per cent hoped to win a lottery. Twenty-eight per cent say they expect to get financial assistance from their children or other family members.
Chris Buttigieg, a senior manager of wealth planning strategy at BMO, advises against relying solely on government pension plans in retirement, given that the average monthly CPP payment is less than $600 and the maximum tops out at not much more than $1,000.
“Rather, they should consider the CPP and QPP to be a supplementary component of their overall retirement income solution and focus on creating their very own personal pension plan by contributing to an RRSP on a regular basis,” he said.