Pattie Lovett-Reid: Canadians are living longer but saving less
The deadline for your 2016 RRSP contribution is March 1, 2017. But that was then and this is now. What are you going to do differently when it comes to your retirement savings this year? According to RBC’s recent retirement poll, we are living long but saving less.
Let's narrow in on Boomers, those 55 and over, who could easily spend 30 years in retirement. When asked their top three concerns around retirement, all focused on longevity. It is a tough question to ask yourself, “What if you live too darn long?” Boomers' top concern according to the poll was worries about maintaining their standard of living (39 per cent), followed by worries about having enough saved (37 per cent), while third was covering health care costs (34 per cent). Interesting to note only 33 per cent indicated they’ll adjust their retirement lifestyle plans to prepare for three decades after they retire.
The biggest worry around funding retirement always comes back to, “Will I have enough to see me through my retirement?”
While these questions won’t provide all the answers, they are good place to start:
- Where do you want to live?
- Do you have travel plans?
- Will you be providing financial assistance to other family members?
- Have you discussed your plans with your family and advisor
I’ve come to realize your lifestyle will always be a big driver of retirement income requirements.
CTV's Chief Financial Commentator Pattie Lovett-Reid offers a financial tip of the day during the month of February for Your Money Month.