Expectations rarely match reality when it comes to retirement savings, according to a new survey.

About a quarter of working Canadians believe their savings will be their primary source of retirement income, but only 15 per cent of retirees do, according to a new report by the Colleges of Applied Arts and Technology Pension Plan (CAAT), so 58 per cent of retirees rely on the Canada Pension Plan (CPP) and Old Age Security (OAS) for income.

“A big challenge stems from the onus placed on Canadians to make long-term decisions about saving, investing and turning those savings into reliable retirement income,” said the report, which outlines a series of misconceptions many working Canadians have about their retirement funds. “Without strong structures and support, those decisions can be difficult to navigate.”

One misconception is that pension plans are simply icing on the retirement cake, but the report said retired Canadians with pensions earn an average of $85,735 per year, compared to $52,570 for those who don’t.

There’s also a disconnect when it comes to retirement ages. Most Canadians believe 60 is the ideal age to retire, but expect to retire at 67.

“Canadians don’t close the retirement gap over time,” the report said. “Instead, they shift expectations. Rather than materially increase savings or change planning behaviour early, Canadians tend to delay key decisions and push retirement further out. They assume there will be more time to save.”

Saving in general can be a challenge, with 60 per cent of those earning $50,000 or less not saving for retirement at all and 38 per cent of those without a workplace pension taking little to no action when it comes to saving.

Many Canadians simply lack the right tools to properly save for retirement. Sixty-eight per cent of retirees wished they had had the ability to save for retirement earlier in life, while 58 per cent of working Canadians say the lack of a workplace pension limits their ability to save.

But at least Canadians largely understand that government pensions alone are not enough to retire, and 90 per cent would support policies meant to make retirement savings easier to amass.

“A real opportunity exists to rethink how our retirement system is designed,” the report said. “It should better reflect how people actually behave, provide more predictability and make retirement easier to navigate with confidence. That means expanding access to solutions, such as defined benefit workplace pensions, that deliver income security, simplify decision-making and better support today’s realities. We will all be better for it.”

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The U.S. Treasury Department has begun refunding tariff revenue that was charged unlawfully, to the point where more money is going out than what’s coming in.

The department return US$22 billion in tariff revenue in May more than the agency brought in.

Businesses continue to pay tariffs from every country, however, even after the U.S. Supreme Court struck down U.S. President Donald Trump’s emergency tariffs.

Additionally, a temporary 10 per cent global tariff rate expires at the end of the month.

White House officials have pledged to restore the tariffs with more legally sturdy duties.

Read more here. 

• Juneteenth holiday in the U.S., U.S. markets closed

• Today’s Data: Retail sales for April

• Earnings: Apex Resources Inc.

More than one generation of a family living under the same roof is one way to handle the rising cost of living, but it can quickly turn financially complicated. From who helps aging parents to who’s saving for a house, financial plans need to account for the reality of sharing a home. Find out more here.

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Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

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Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff and Bloomberg.

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