Canadian Baby Boomers share with their U.S. counterparts concerns and regrets over their retirement planning,
Canadian Baby Boomers share with their U.S. counterparts concerns and regrets over their retirement planning, according to a new Socitabank retirement study,
Only 9 percent thought about their retirement when they entered the workplace, even though 39 percent of respondents allowed that retirement planning should begin when one begins their career, the study found.
As to when they actually started thinking about their own retirement, the highest percentage (25 percent) said more than decade before they planned to stop working.
The primary triggers to start thinking about retirement, the study found, are they they have enough money (42 percent), when their pension begins (16 percent) and health issues (10 percent).
The study also found that:
- Nearly one-third (31 percent) of Canadian Baby Boomers don’t know how much they will need in retirement savings, while nearly three-in-ten (28 percent) will be carrying some form of debt into their retirement.
- Four-in-ten are working during retirement, more than eight-in-ten of which are working part-time.
- Among Boomers who have not yet retired, 15 percent plan to never stop working.
- The most oft-cited reasons retirees are working in retirement are to remain mentally engaged (76 percent), social interaction (61 percent) and financial necessity (39 percent).
Retirement planning concerns are universal. In America, the devastating impact of the economic collapse, the prolonged economic recovery, job insecurity and escalating health care costs are among the factors that have shaken boomers and retirees’ retirement outlook.
Affluent American households say that not saving enough for retirement and outliving their savings are their biggest financial mistakes and regrets, according to Spectrem’s Millionaire Corner research. Among non-Millionaires with a net worth of at least $100,000 (not including primary residence), 56 percent are concerned about being able to retire as planned.
A 2014 A Spectrem’s Millionaire Corner study of retirement plan participants finds similar concerns as well as optimism. Half said that their financial situation is better than it was in the previous year and nearly six-in-ten said they expect their personal financial situation will be stronger next year.
At the same time, these retirement plan participants also report misgivings about their retirement savings and household debt. Nearly half (48 percent) said that their household is not saving enough to meet their financial goals, while 41 percent said they are concerned about their current level of household debt. Less than half (43 percent) expect to have sufficient income to live comfortably during retirement.
Related story: Retirement confidence up...but doubts persist
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.