Over 60% of Canadians are afraid of running out of money in retirement, study shows — Here's how to manage that anxiety with solid financial planning

So why are so many Canadians stressed out about their retirement finances and what age group is feeling the sting the most?

The generation feeling the biggest sting

There is something to say about youthful abandon and living life to the fullest when your responsibilities are less crucial. However, young adults are becoming increasingly concerned with their financial security.

Sixty-three percent of Canadians between the ages of 18 and 24 years old are stressed about how much money they will have saved for their future, and report being anxious about making bad decisions now that could impact their financial situations in the future.

Those between 28 and 44 years old represent 67% of the group who say they are worried, with women representing a vast majority at 66%.

However, these worries lessen as Canadians age, with only a third of those 65 years and older saying they are scared about their retirement finances.

What economic factors are causing the most stress for those concerned with their finances?

Inflation and affordability are top concerns

Michel Leduc, the senior managing director & global head of public affairs and communications for CPP Investments, says that running out of money because of longer life expectancies is an factor for why many are feeling financial stress. “This underscores the importance of building a solid understanding of your personal finances and seeking resources to improve financial literacy to help you manage money more effectively,” he said in a statement.

The top two concerns that are keeping Canadians up at night are Inflation and affordability concerns, which, in the past year alone, has resulted in Canadians raising their retirement savings goal over 30%, from $700,000 to $900,000 to ensure less stressful Golden Years.

Don't worry, though — you can take steps today to prepare for retirement and ease the anxiety about your financial future.

Plan your retirement roadmap

First of all, if you're a working Canadian, you are already saving for yourr retirement through your CPP contributions.

According to Leduc, “One thing that Canadians have that protects them is that their CPP benefits are payable as long as they live and are indexed to inflation. They can take comfort in the fact that the CPP – in part through the work of CPP Investments – will be there for them and for generations to come.”

Additionally, this social insurance program is one of the largest pension plans in the world, with the CPP Fund holding more than $675 billion in assets with a 10-year net return of 9.1%.

Beyond CPP, the Canadian Investment Regulatory Organization (CIRO) has a useful roadmap for retirement and says that how much to save depends on the strategy you want to use.