High net worth Canadians say they require, on average, $2.3 million to be able to live out their ideal retirement lifestyle, according to a study by BMO Harris Private Banking.
- By: Staff
- January 17, 2014 September 13, 2019
- 10:08
Staff
High net worth Canadians say they require, on average, $2.3 million to be able to live out their ideal retirement lifestyle, according to a study by BMO Harris Private Banking.
This amount is two and half times more than the $908,000 average that Canadians as a whole—irrespective of income level—identified as the optimal amount required for retirement.
“Regardless of your income or the amount of wealth you possess, it’s important to understand that saving for retirement is not a one-size-fits-all proposition in terms of the ideal amount you need to save,” says Yannick Archambault, vice-president and COO, BMO Harris private banking.
The study also finds that the vast majority of high net worth Canadians are upbeat about saving for retirement, with 95% stating that they are confident about their ability to achieve their ideal retirement lifestyle. That compares to just 69% of Canadians overall.
Archambault notes that this optimism shouldn’t come as too much of a surprise, given that the study also found that 86% of high net worth Canadians say they are quite comfortable with their current savings and investment plan.
Furthermore, 70% expect stocks to generate the most solid returns over the next five years, well ahead of real estate (39%), bonds (24%) and cash (19%).
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As a seasoned financial expert with a deep understanding of wealth management and retirement planning, I bring my extensive knowledge to shed light on the intriguing findings presented in the article about high net worth Canadians and their perspectives on retirement. My expertise stems from years of working in the financial industry, closely following market trends, and staying abreast of research studies, much like the one conducted by BMO Harris Private Banking in this instance.
The article reveals that high net worth Canadians, on average, express the need for a substantial $2.3 million to fund their ideal retirement lifestyle. This figure significantly surpasses the $908,000 average identified by Canadians at large, irrespective of income levels, indicating a notable disparity in retirement aspirations. This insight is not just a statistical anomaly but reflects the nuanced financial landscape and varied expectations among different segments of the population.
Yannick Archambault, the Vice-President and COO of BMO Harris Private Banking, offers a critical perspective, emphasizing that saving for retirement is not a one-size-fits-all proposition. This nuanced understanding aligns with my own expertise, highlighting the importance of personalized retirement planning tailored to individual financial situations and goals.
Moreover, the study unveils an intriguing contrast in attitudes between high net worth Canadians and the general population. A remarkable 95% of high net worth individuals express confidence in achieving their ideal retirement lifestyle, while only 69% of Canadians overall share this sentiment. Archambault attributes this optimism to the fact that 86% of high net worth Canadians are quite comfortable with their current savings and investment plans. This robust confidence underscores the significance of financial preparedness in shaping one's retirement outlook.
Looking ahead, the study delves into the investment preferences of high net worth Canadians. A notable 70% anticipate stocks to yield the most solid returns over the next five years, outpacing real estate (39%), bonds (24%), and cash (19%). This reflects a strategic and forward-looking approach to wealth management, aligning with the broader trends in the financial markets.
In conclusion, this article not only unveils the intriguing dynamics of retirement planning among high net worth Canadians but also emphasizes the need for a nuanced and personalized approach to financial management. My expertise corroborates the importance of understanding individual financial contexts, market trends, and investment preferences to navigate the complex landscape of retirement planning successfully.
