If I understand the question clearly, as we laid out in the backgrounder and as the minister mentioned, our analysis looks at Canadian households and their asset/liability profile through the survey of financial security. We take that financial profile and then evaluate what an individual household might have in terms of income sources after retirement.
As the minister said, our three pillars of retirement income are OAS, CPP, and private savings, either sponsored through RRSPs or TFSAs or in the form of other equities such as mutual funds, stocks, or equity that they would have in their household. Then we annuitize this balance sheet in a position against life expectancy of the average Canadian family and individual. Our assessment told us that 25% of individuals are at risk of under-saving when their position is calibrated against a 60% post-retirement income replacement rate.
That varies. There are commentators who believe that you need a lower income replacement rate. If that is so, then obviously the risk of under-saving goes down, but there are an equal number of people and academics who think you may need a higher replacement rate, depending on your income or household profile, and then the risk of under-saving goes up. At that 60% replacement rate, which the majority of literature out there says is a reasonable replacement rate to replace pre-retirement consumption, we believe 24% of Canadian households are at risk of under-saving.