Nursing Home Blog
Retirement Poll Causing Canadians To Re-Think Retirement Finances
Posted on Tue, February 21, 2017 at 9:50 pm
The Royal Bank of Canada released an interesting poll (accessible by clicking HERE) that reveals that nearly half of Canadians over the age of 55 believe they are falling short of their retirement savings goals and are worried about their future financial obligations. Millions worry about how they will fund their retirement. As we live longer and expect decades of meaningful and healthy living past retirement, it cannot come as a great surprise that many are realizing that they might outlive their savings nestegg.
Beneath the findings is a worrisome corollary that only one third of people aged 55+ are, at the same time, willing to tweak their lifestyle in order to be able to manage their finances. In the Facebook Age, many staples of the Canadian family have given way to loftier financial expectations and a plethora of wants that feel like needs. It's hard not to subscribe to the often costly services that surround us. And in retirement, people want to enjoy the fruit of their labour. However, record low interest rates (on investments), rapidly rising hydro costs (in Ontario), rising rents, and creeping taxes (especially Municipal as MPAC property values soar) add further layers of financial stress to seniors on fixed retirement incomes. This makes planning even more difficult.
The implications of this demographic shift on finances are huge and the problem of financing a growing retirement is certain to become a major issue in our country in the next decade as boomers retire. To underscore this trend, consider that while 5,800 centarians were alive in Canada in 2011, Statistics Canada expects that number to balloon to 78,000 by 2061.
The Royal Bank of Canada (RBC) has done a nice job in addressing this trend by creating "Retirement: Real Talk" videos and other resources to help one plan for a lengthy retirement (accessible by clicking HERE).
All of this means that it might just be time for you to sit down and plan out your retirement financial needs.
This exercise is not meant to scare you or make you feel a year or two away from certain poverty, but it will allow you to exercise careful decision-making and get your head around the magnitude of planning for what could be 30+ year retirement. There is a huge demographic and financial trend that is coming and it will confront many, many aging Canadians. Are you ready to tackle it?
Disclaimer. Please understand that we are not endorsing RBC or any of its affiliates, nor did we receive any financial compensation to include this on our website. We are simply sharing useful information that has been placed in the public domain.