The Realities of Retirement Planning in Canada
According to the recent RBC poll on Retirement Myths & Realities, Canadian’s expectations of retirement planning in Canada and the reality of their actual retirement objectives and goals have many major conflicts.
Here are some highlights from the poll that compare retirement planning “Expectations” with “Reality.”
Social Time Missed More Than Regular Paycheques
Expectation: Nearly half of the Canadians polled say they will miss their paycheques after retirement, when in reality, only about 26%1 say they do.
Reality: What Canadians actually miss most after retirement is the social interaction with co-workers – in fact, over half of retired Canadians say they miss the social outlet more than they miss their paycheque.
Time For Self Tops Travel Expectations
Expectation: The top expectation of how Canadians think they will spend their time after retirement is doing more travel.
Reality: In reality, as many as 7 out of every 10 Canadians say they travel less and actually spend more time “taking time for myself.”
Most Canadians Don’t Choose Their Retirement Date
Expectation: Approximately 80%2 of Canadians think they will choose their own retirement date.
Reality: The facts reveal however, that as many as 43% of Canadians won’t get to choose their retirement date.
- 48% of Canadians retire earlier than expected
- 46% of Canadians retire when expected
- 6% of Canadians retire later than expected
There are several reasons for this including health, costs of living, the need to take care of a loved one, or depending on the employer’s request.
Canadians Worry About Financial Costs After Retirement
If you are worrying about how you will pay all your bills while supporting your lifestyle after retiring you are not alone.
Expectation: Just less than half of the Canadians polled (48%) say they worry about their money lasting their lifetime.
Reality: In reality, Canadians vary on how they feel about their financial position:
- 38% feel they have enough to do everything they want
- 44% feel they can live comfortably but without room for the “extras”
- 18% feel they are just making ends meet
Retired Canadians Will Spend Around $2400 Per Month
Retired Canadians need approximately $28,8003 per year after retiring. This total retirement income includes:
- Living expenses
- Medical expenses
Many retired Canadians also take on extraordinary purchases during retirement including buying a new vehicle, renovating their home, or giving large amounts of money to family members.
Why Is Retirement Planning in Canada Important?
Retirement represents an important life event that you need to seriously think about and prepare for.
Whether your retirement comes exactly when you expect it to or if you should retire earlier or later than expected, the fact of the matter is, you should work with a chartered retirement planning counsellor that can provide you with good solid advice.
Are you a baby boomer nearing retirement and needing some more concrete answers about financial retirement planning in Canada? Let us help you understand why retirement planning is important.
Call Edmonton’s Benefit Strategies at 1-780-437-5070 to speak with one of our retirement planning counsellors and advisors about early retirement planning for small business owners or for individuals.