The general recommendations most often put forward here and elsewhere percolate into the general public at a geological slowness, despite the popularity of personal finance topics in the media.
Otherwise, we would see its manifestations in the statistics on savings and debt, in airport traffic, in the turnover of car manufacturers and swimming pool sellers. In the mail I receive, too.
And in the indicators from Retraite Québec, which has just published the results of a survey on retirement planning.
As you know, the organization oversees the Quebec Pension Plan and the pension funds of Quebec public service employees. It also regulates private sector schemes. It also has a (secondary) mandate to educate the public on issues related to retirement.
The little probe I’m telling you about, the fifth of its kind since 2019, aims, according to my understanding, to establish the state of play to better guide Retraite Québec’s action in terms of information.
First observation: the two main indicators measured in the survey are stagnating, they have been oscillating within the margin of error for five years. But hey, five years isn’t very long either.
The survey was carried out among a sample of some 1,500 non-retired people aged 18 to 74. One in two people would be aware of what to do to financially plan their retirement, concludes Retraite Québec, in light of the results. This is what he calls the “awareness indicator”, based on around ten questions. We are here at the level of knowledge.
The other measure, the “planning indicator”, indicates that one person in two (still) takes concrete steps to plan their retirement. We are in action. Note that the youngest segment of the sample, 18-24 year olds, was excluded from this indicator (developed using 18 statements). We understand this refinement, the people excluded from the group have often not started their career.
If the results are good? I don’t know, all we can say is that it doesn’t get much better.
The luxury of personal finance
Second observation: concerns about retirement, and personal finances in general, are a “luxury”. We knew that.
The younger you are, the lower your salary, the more your financial goals are short-term. You need surpluses to take advantage of the different retirement savings vehicles, so we are less interested in them when we don’t feel involved.
As you move towards retirement, you earn a better living while seeing your family obligations lessen. At this moment, we feel more challenged by these subjects. Women, however, generally lag behind men in both indicators, undoubtedly for reasons of persistent pay disparities.
Third observation, in the form of a very personal question mark: why this exercise? Is this really necessary, especially since the results do not reveal anything that we did not already know, financial literacy in the population, if you will allow me a euphemism, remains subject to improvement from ALL angles?
My questioning is mainly due to the skepticism that this type of survey has always aroused in me. The object of study is nebulous, it is based on perceptions. Is it the feelings we want to measure or the level of knowledge and preparation about retirement planning? Surveys do not tell us what respondents know, if they act adequately. Rather, the results offer insights into what people believe they can do correctly.
“What problems should the government tackle as a priority?” That’s a clear question that leaves little room for interpretation. And it’s useful, like this, corollary: “Which party are you going to vote for?” In addition, the pollster risks his reputation, at least as the elections approach, because real results will ultimately validate the quality of the survey.
If you’re asked if “you think you’re saving enough for retirement,” it’s much less obvious. It’s rather soft, in fact, and if the research firm gets the wording of the statement wrong, what risk does it run? How to put your data to the test?
If you “think,” it’s because you’re not sure. Ultimately, the only respondents who can reasonably be trusted with this type of question are those who “don’t think.” Someone who says “I don’t think I’m saving enough” is more honest or more lucid.
It bothers me, I tell you. Based on such research, we can only conclude, for example, that 42.8% of respondents think they are saving enough for retirement. What’s the point of knowing that?
And tell me, how to reconcile this answer with the fact that 70.5% of those questioned affirm, just a little higher in the survey, “to take concrete actions to ensure a suitable income in retirement”.
Mind you, I’m probably getting stuck in the flowers on the carpet. These nuances are certainly not necessary for Retraite Québec to modulate its awareness work. But there was no need to disturb 1500 people for that.
You could have just asked me.
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