Have you thought about how you’ll maintain your standard of living in retirement? According to Statscan, nearly 30 per cent of Canadians nearing retirement are less than confident they’re socking away enough money to do that.
The survey finds that 19 per cent of respondents aged 45 to 59 are expecting their retirement income will be “barely adequate.” Another nine per cent expect it to be “inadequate” or “very inadequate.”
Researchers say those who have pension coverage and more years of service are more positive about their retirement financial future. The same applies to those with RRSP’s who own a home.
Financial planners say Canadians don’t want to give up their lifestyle because they’re getting older, so the old kind of textbook rule that you can retire on 70 per cent of your income doesn’t apply.
Experts say the bottom line for many is that if people don’t want to be forced to live off of half or a third of their pre-retirement cash flow that their only answer is to work longer.