Many not prepared for retirement!

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While all Canadians are likely aware that retirement looms on the horizon, a staggering majority are not prepared for it; many more don’t even have a plan in place to get them there.
A recent poll from ING Direct suggests that 58% of Canadians say that they are not prepared for retirement, and that 68% have no strategic plan assembled to help them along the way.
Not surprisingly, the poll found that the younger the respondents were, the less that retirement saving was on their minds, although most financial planners will tell you the key for gathering assets for retirement with the least amount of pain is to start early and have the power of compounding on your side.
The focus for most is repaying high interest debt in the short term before embarking on savings. Furthermore, respondents with children aged 18 or under living at home say that there are far too many other expenses taking precedence over retirement savings. Paying down their mortgage and saving for children’s education are taking up all of their time and their resources.
It is crucial though, to have a plan in place, or as many will tell you- retirement savings will not just happen. It takes a well-thought out, long term commitment. With governmental support for retirement likely dwindling in the coming years, as well as with the Baby Boomer cohort moving into retirement, the onus for financial planning is falling more squarely on the shoulders of average investors.
“Saving for retirement can't be an afterthought," said Peter Aceto, president and CEO, ING DIRECT Canada. "Despite the amount of debt people are carrying and what we keep hearing in the news, saving is still possible. Understanding the importance of starting early, even if it means starting small, has a huge influence on the ability to meet your financial goals. Canadians should also look at the value they're getting from their existing financial products and have ongoing conversations about money with friends, family and on social networks, which can play a big role in being better informed about personal finances."
Many do have RRSPs; the poll finds that for those that do have them are contributing on average $1001-$2500 each year.
The key is to make savings painless and invisible and habitual.
"Saving $50 a month, at a 2.5% interest rate compounded over 30 years would provide more than $25,000 in savings*. If you can't find $50 to contribute, start by taking a look at the fees you pay for your financial products. In many cases, this expense can be eliminated and redirected to savings," said Aceto.
He added, "A saving habit takes discipline but once you start it's very easy to maintain, especially with an automatic savings plan. Our clients are always happily surprised at how much they've built in savings even with small monthly contributions. It's exciting to see your savings grow and feel in control of your financial wellbeing."