Panic and confusion grip RRSP season, once again: Dale Jackson

Inflation is fleeting, but it’s also a minor variable to consider when calculating how much we need in retirement. Here is some basic background information required to get an accurate estimate, Dale Jackson writes for BNN Bloomberg.

How we collectively came to that figure is a lot to unpack, but it does reveal just how much most of us are in the dark about saving for retirement. A more revealing finding from the same BMO survey says 53 per cent of respondents say they have no idea how much they will need to retire. Kudos to the other 47 per cent.

Blame it on RRSP season hype; the finance industry marketing drive to shame customers into making tax-deferrable contributions to their registered retirement savings plans (RRSP) before the March first deadline.

The survey cites inflation as the main concern raising retirement expectations to such lofty levels. Last summer it hit a four-decade high of 8.1 per cent but has since fallen to 6.3 per cent as the Bank of Canada waits to see if an aggressive series of interest rate hikes brings inflation closer to its target of two per cent.