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By Wendy McLellan
The Province
Tuesday, January 10, 2006
For the first time in seven years, Canadians say that saving for retirement is their top financial priority, says a poll released yesterday.
Adrian Mastracci, investment counsel at Vancouver’s ‘fee-only’ KCM Wealth Management, says, "For those with a mortgage, repayment is the best investment.”
The poll, commissioned by the Royal Bank, asked people to identify their top financial concern at present and 38 per cent cited retirement savings as their No. 1 issue.
In B.C., the number was slightly higher, with 42 per cent of residents concerned about saving for retirement.
"This is a shift from previous years, when Canadians said that keeping their heads above water was their primary financial focus," said the RBC release. It's the first time in seven years that retirement earned top spot in the survey, which has been conducted annually for the past 15 years.
"It's good to see retirement savings are a priority," said Jayelene Catala, financial planner.
"It's partly the aging population and also people becoming increasingly aware that retirement is just around the corner."
The annual RRSP marketing season has just begun.
For the B.C. residents who didn't put saving for retirement at the top of their list, 29 per cent said home ownership was most important and 24 per cent cited making regular payments to reduce debt as their priority. The average planned contribution for the 2005 tax year was $5,792, which is slightly higher than the national average of $5,700 and a $140 increase over last year.
Adrian Mastracci, a Vancouver investment counsellor and president of KCM Wealth Management, agrees retirement is at the top of most of his clients' lists.
"Retirement is the first thing out of their mouths," Mastracci said. "It's being taken seriously, but people's paycheques have a lot of demands on them."
He said retirement planning is a long-term process and the sooner people consider their needs when they leave the workforce, the better. He suggests putting a little away every month, then using the tax rebate -- and any extra funds -- to pay off the mortgage rather than focusing only on RRSPs.
"For those with a mortgage, repayment is the best investment," Mastracci said.
"Do some RRSP saving, but also work on the mortgage. Get the debts off your back as soon as possible."
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