Nearly 1 in 5 Canadians planning to postpone retirement

September 7, 2021

Almost one in five (18 per cent of) Canadians aged 50 and up are planning to push out their retirement date, according to a report from RBC.

The reason? Twenty-one per cent of those with more than $100,000 in investable assets now expect to outlast their savings by 10 years, up from 16 per cent in 2010.

In fact, Canadians are still far from achieving their retirement savings goals. Workers with more than $100,000 in investable assets are looking at having over $1 million in retirement, but only have roughly $700,000 saved. Those with less than $100,000 in investable assets are hoping for over $530,000 in retirement savings, but only have roughly $60,000 saved.

Worse, 50 per cent do not yet have a retirement financial plan, and just 20 per cent have created a formal plan with an advisor or a financial planner.

“If you’re nearing retirement without a formal plan, there’s a shrinking window of opportunity to review your options, to see if you can enjoy the retirement lifestyle you’re hoping for,” says Rick Lowes, vice-president for strategy at RBC. “Retirees will find a way to make their finances work, but this may mean they aren’t leading the lives they were hoping for when they retire.”

Forty per cent of Canadian adults worry about the effect of COVID-19 on their savings and retirement plans, according to a separate report.

Source: HR Reporter