A poll released Monday by the Investor Education Fund (IEF) said that half of Canadians over the age of 50 believe their retirement savings will be tapped out within the first 10 years of retirement.
The study, released in the shadow of the RRSP contribution deadline, presents a number of strategy suggestions and alternatives for those approaching retirement age who need to find the means to live once they have exited the workforce.
There were other concerning statistics to come out of the study, including the fact that 19 per cent of Canadians surveyed don’t know how much they’ve saved for retirement, another 41 per cent have saved less than $100,000, and only 21 per cent have more than $250,000 set aside.
The matter of poor retirement planning could be further exacerbated by the absence of willingness to adapt to the reality, the study suggests: 48 per cent of respondents have not considered selling their home for retirement and 24 per cent will carry mortgage debt into retirement.
This apparently rampant lack of planning for retirement offers grim foreshadowing of the many economic challenges anticipated for Canada as the boomer generation enters it’s twilight years.
Those who are entering their fifth decade of life would be well-advised to sit down with a financial advisor and work out a strategy for their life after work, but the same advice could be offered to people of all ages — it certainly never hurts to start early.
The deadline — being the cut-off point for RRSP contributions that can be claimed on this year’s tax returns — is Friday.
All editorials are written by the Times-Herald editorial staff.