The vast majority of retired Canadians (90%) say they retired at the age they had planned, finds a new survey by Tangerine.
Even better, out of those who saved for retirement over the past few decades, most (77%) are now living the lifestyle they had envisioned.
But times are changing, says the survey.
While more than two-thirds (69%) of current retirees finished their careers between the ages of 55 and 64, only 39% of current working Canadians predict they’ll be able to retire by age 64. Further, nearly 1-in-5 expect to work well into their seventies, and only 53% expect to afford their preferred lifestyles.
That’s the case, adds the survey, even though 78% of working Canadians have started saving for retirement. Of those who have begun to save, 39% report their parents passed along their money management skills and habits.
One reason people are working longer is they’re living longer. As assistant editor Katie Keir reported in the January issue of Advisor’s Edge, that means your clients will not only need to save more but also stretch their funds over longer periods of time–especially if their families have checkered health histories.
If clients can’t imagine living past age 100, tell them more than 50,000 people across North America already have, says Dan Anders.
What’s more, the number of centenarians (people aged 100 and older) in Canada is rising. Statistics Canada says that cohort grew 25.7% between 2006 and 2011 (the number of people aged 60 to 64 grew 29.1%). It’s also been one of the fastest-growing segments for nearly 40 years (see “Changing retirement landscape,” below).
So Anders, a retirement and estate-planning advisor in Vancouver, says if people aren’t realistic about their life expectations and income needs, they’ll run out of money.
For more, read Make Way for Centenarians.