Boomers aren’t saving more for retirement even as they’re expected to live longer

By: Dominic Licorish on February 14, 2017

A new poll finds that nearly half of Canada’s boomers feel like they won’t have enough money to maintain the lifestyle they want when they retire.

The RBC Financial Independence in Retirement Poll, which was conducted by Ipsos, surveyed more than 2,000 adults across Canada and highlighted that despite longer expected lives, most people aren’t making any preparations to deal with those extra years. Only 33% of people indicated that they would adjust their lifestyle plans to prepare for a 30-year-long retirement.

Another finding of the poll was that 46% of Canadians aged 55+ felt “somewhere short/nowhere close” to where they anticipated they would be in terms of their retirement savings. Their number one concern was “will I have enough money in retirement?”

According to RBC’s national retirement planning consultant, Bill Hill, these are the questions you need to ask yourself if you’re planning your retirement:

  • Where will you want to live?

  • Do you have any travel plans in mind?

  • Will you be providing any assistance to younger or aging family members?

  • Have you discussed your plans with people close to you and with a financial advisor?

With more Millennials turning to their boomer parents for help with housing and other costs, it’s important for people to realize they will likely need more money than they think after they stop working. Rising housing costs are also a major factor. In some markets (e.g. Toronto, Vancouver) renting is no longer a guaranteed cheap option. This is something boomers who are planning on selling their homes to help fund their retirement need to keep in mind.

It’s never too late early to start thinking about how you will retire. RBC recommends sitting down and talking with a financial planner, as well as the people close to you, to make your retirement goals known and start working towards them early.