Canadians Are Running Out of Money In Retirement

by Bruce AndersonNov 14, 2018Blog0 comments

A survey conducted by the Bank of Montreal asked Canadians over 55 years old about their concerns of running out of money during retirement. The study by BMO showed 51% of respondents are concerned about health problems and costs, 47% are afraid they will run out of money, and 40% are worried they will become a burden on their family if they live longer. 33% of respondents want to help their kids financially, and 25% worry about the tax consequences of retiring and what that could mean for their finances. For those with partners, 49% of respondents said they have different opinions about their shared financial goals.

of respondents are concerned about health problems and costs 51% 51%
of respondents disagree with their partner about their financial goals 49% 49%
of respondents are afriad they will run out of money in retirement 47% 47%
of respondents are worried they will become a financial burden on their family 40% 40%
of respondents want to help their kids financially 33% 33%
of respondents worry about the tax consequences 25% 25%

Tips For Retirement Planning

How does this survey line up with your views? Does your retirement plan support your financial goals? It’s possible that you will be spending a third of your life in retirement! A little planning will go a long way when it comes to ensuring your financial health. Here’s a few tips to getting on track with your retirement plan:

Have the conversation to align yours and your partner’s goals

Is there a vacation or two on the horizon? Are you planning on downsizing or upgrading your home? Have these discussions.

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Are you planning on helping your kids with their finances? How much money do you have to do that?

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Factor in all your healthcare costs - even the unforeseen ones

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Look at ways to reduce your taxes

Ensure your will is written and assets are distributed according to your wishes.

Planning For A Longer Life

This survey was prompted by life expectancies increasing. Canada’s average life expectancy in 2018 for men is 80 and 84 for women for an average of 82. For those taking the survey by the Bank of Montreal who 55 years and older, the average life expectancy has increased 11 years since 1963 when its average was 71. Canadians are living longer which means they need to plan on living longer, too.

Get In Touch With Us

We are never too busy to take the time for a phone call. If you are looking to create, adjust, or modify your retirement plan please, let us know and we will guide you through the process.