The Étude sur les revenus à la retraite des Québécoises et Québécois revealed little-known facts about the population's relationship with saving for retirement. This in-depth survey, conducted by Léger on behalf of the CSF and ÉducÉpargne, explored the differences between men and women, as well as those that persist within cultural communities. In this respect, the survey reveals that there is still a long way to go.

Glaring differences

Hélène Belleau, a researcher and professor at the Institut national de la recherche scientifique (INRS) and holder of the Chaire Argent, Inégalités et société looked into the matter. From the outset, she notes that two elements in particular stand out when it comes to cultural communities. “The economic situation of immigrants is more precarious, but there is also a real lack of understanding of how our pension system works,” she says. Of the 27% of respondents who said their financial situation was poor, 41% were not born in Canada. What's more, of the 19% who said their employment was insecure, 31% were immigrants.

Logically, their lack of financial resources means that they contribute less to their RRSPs and other retirement savings vehicles. Unsurprisingly, they are also more likely to fear depleting their savings too quickly (41% vs. 30% for the Canadian-born population).

Another aspect that weighs heavily in the balance is the fact that many of them expect to have to use their savings to support loved ones, whether they live here or in another country (18% of immigrants compared to 7% of the Canadian-born population). “Another 22% say they have not yet planned for retirement, and think it will take care of itself. This percentage is only 8% in the rest of the population,” notes Hélène Belleau.

Financial literacy needs

The fact that our retirement system is relatively complex, with different components (federal and provincial annuities, employer pension funds, personal savings) doesn't make it easy for newcomers. “Unlike other countries where the system is simplified, here you need to be financially literate to understand it,” she notes.

But that's not all, as immigrants must also grasp the difference between debit and credit cards, familiarize themselves with credit and avoid the pitfalls of debt. Of course, these issues are also present for people born in Canada, but they are multiplied tenfold for new arrivals. In Hélène Belleau's opinion, financial services advisors need to be fully aware of the particular challenges and realities faced by this clientele, in order to better serve and support them.

A new Chair

The Chaire Argent, Inégalités et société was created last November by the CSF in collaboration with the Institut national de la recherche scientifique. Its work focuses on the social aspects of financial management, in order to better understand inequalities and help identify solutions to reduce them. Over the next five years, she will be working on these three topics: complex life situations, immigrant issues and gender analysis.