More than sixty percent of Canadians don't have a company pension plan to cover them in their retirement.
Instead, they’ll be relying on their savings, and Canada Pension Plan or QPP, which provide just $16,000 a year in benefits.
Of those who do have a pension plan, half work in the public sector where they’re more likely to have a defined benefit plan, which will provide them with a fixed monthly income after retirement.
Among private sector employees, 85 per cent with plans have a defined contribution plan, where their benefits rely on their own contributions and how much they grow over a lifetime of working.
Which is why Canadians are encouraged to save for retirement.
Bruce Sellery, author of The Moolala Guide to Rockin' Your RRSP, has some tips for getting started in this interview with CBC’s The Lang & O’Leary Exchange.