Jul 13, 2016
Pattie Lovett-Reid: Financial tips retirees would tell their younger selves
Canadian retirees are some of the happiest people in the world and pre-retirees are among the most likely to expect property to fund their retirements, according to a new global HSBC survey.
Despite all the talk from government officials about increasing Canada Pension Plan payments, just 53 per cent of retirees say a government pension is helping to fund their retirement and only 35 per cent of working-age Canadians say that will be the case for them. Instead, many expect personal pension schemes, cash savings and their property to fund their retirement.
Ironically, Canadian retirees ranked as some of the happiest in the world, while almost half of working-age people in Canada are not currently saving for retirement. Furthermore, they are twice as likely to consider selling their homes to fund retirement, compared to those who have been able to stay the course and save.
Here’s a look at some other numbers from the survey:
- 20 per cent of Canadians say that income from downsizing or selling a primary or secondary residence will help fund their retirement. In Australia, it’s 26 per cent, the U.K. 22 per cent, Singapore 21 per cent, and the global average is 12 per cent
- 48 per cent of Canadians are not currently saving for retirement, which at least is better than the 65 per cent from Argentina, Taiwan at 54 per cent, France 53 per cent and Mexico 52 per cent
- 59 per cent of pre-retirees say they plan to move into a retirement home one day. That’s four times more likely than current retirees, and almost double the global average of 31 per cent. It’s worth noting the average cost of assisted living for one person in Canada was $41,724 per year in 2013
The best advice retirees say they would send to their younger self?
1. Start saving now - yes, now: 39 per cent say they would have started earlier.
2. Get help: Talk things through with family and friends but 45 per cent of respondents suggest speaking with a professional to gain a better understanding of the financial implications of your choices.
3. Take care of yourself - you are worth it: Regardless of your age, good health should be a top priority, followed by having enough money for a comfortable life.
