High-net Worth Need More In Retirement

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    High-net worth Canadians (those with investible assets of $1 million or more) require, on average, $2.3 million to be able to live out their ideal retirement lifestyle, says 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. It found that the vast majority of high-net worth Canadians are upbeat about saving for retirement, with 95 per cent stating that they are confident about their ability to achieve their ideal retirement lifestyle (versus 69 per cent of Canadians overall). This optimism should not come as too much of a surprise, given that the study also found that 86 per cent of high-net worth Canadians say they are quite comfortable with their current savings and investment plan. Further, 70 per cent expect stocks to generate the most solid returns over the next five years, well ahead of real estate (39 per cent), bonds (24 per cent), and cash (19 per cent).