Canada's seniors are really worried about running out of money

Canada's seniors are really worried about running out of money

Canada

Canada’s retirees are concerned that their retirement fund won’t last through their final years.

They are also worried that they won’t have the funds needed to pay for long-term care and that they might have to rely on their children for financial support.

Almost half of respondents to a survey by Financial Planning Standards Council (FPSC) and Credit Canada said they have at least one financial concern.

Never being debt-free, low retirement funds, and being forced to sell their home are all high on the list of concerns of the over 60s.

“Times are changing, and many seniors haven’t planned for or anticipated the life and financial circumstances they now are facing,” says author, personal finance educator and FPSC’s Consumer Advocate, Kelley Keehn. “Some seniors may feel embarrassed, or that it’s too late to ask for assistance when it comes to their finances.”

Is retirement becoming a luxury?
These fears – and in many cases realities – mean that more Canadian seniors are continuing to work.

One in 5 are working past 60 and 6% are still working into their 80s. While a third said that’s because they love their job, almost as many said they can’t afford to retire (13% said they never will be able to!)

Other reasons for a delayed retirement include too much debt (1 in 8), not enough savings (28%), and supporting children financially (12%).

The study shows that fewer more recent retirees have a company pension than older seniors with 50% of those 80 and older listing a company pension plan as a source of income, while the percentage is 41% among those 60-69.

Among those who do have a company pension, 40% also have investments.

Men are significantly more likely than women to be working, have a company pension plan, or have investments as their current source of income.

The full report is available from fpsc.ca


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