In 2013 Retirement was cut short for 30% of older Canadians due to financial concerns, says a January 2014 Angus Reid on line survey for ING Direct. Nearly half of those people (48%), were forced back to work to boost their savings. The bank finds 31% of retirees who return to the workforce often do so because their living costs are also rising. What a thought! You are retired and then you have to make yourself unretired !
What’s more, the reality of retirement isn’t often what older Canadians imagined when they were young. Almost half (45%) concede the costs of living are higher than anticipated. As such, they wish they had saved more in their 20s and 30s (29%), adding they shouldn’t have spent mindlessly prior to retirement (11%).
Most Canadians aged 18 to 34 (64%) are contributing regularly to RRSP and retirement savings, says another ING study that centred on young investors. The only problem is many (69%) aren’t maxing out their annual contributions, and more than half (61%) aren’t sure how much they need to save. Nonetheless, they’re motivated to put away funds due to habits handed down by parents (29%), because they know financial plans are effective (22%), or because they see a current retiree struggling (18%).
Most retirees nowadays (40%) says they would have maxed out their annual contributions if they’d had a better understanding of how much they needed to retire. Another 16% wish they’d had a good financial role model. At You First Financial we can help you to determine how much you need to save to reach your comfortable retirement goals and then you can be a good financial role model to others.
RRSP Deadline is March 3, 2014