Many boomers in retirement-denial

In shocking news, it would appear that many Canadian boomer savings levels are below what it would take for a comfortable retirement.

Way back in 2006, about 20% of the boomers that responded to a BMO survey said they were not confident they had enough savings to retire on.

Now?  That’s changed to 46% of boomers who say they don’t have enough to retire on.

Most boomers said they would like to retire at 59, but will need to work until 63.

The plan for many is to take a part time job or sell off belongings.

About 32 per cent expected to sell their home, while another 19 per cent said they will rent out part of their home for additional income.

To Buttigieg, boomers’ ability to save may have been affected by the challenges associated with paying off a mortgage, helping children through university and caring for elderly parents.

Inflation, low returns, living a long life and health issues call also spoil retirement plans, according to Mastracci, but he says one of the biggest problems continues to be debt loads.

“A lot of retirees still have debts (and) they have to clear the deck,” he said.

A recent report from Equifax says a growing number of seniors are taking on more debt to fund retirement lifestyles.

Hat-tip to Many Franks.

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John B.
Guest
John B.

I think it is also important to mention that many elderly Canadians have exactly the opposite problems with their retirement funds – they are taking their mortgage into retirement. This is particularly dangerous in areas without jobs that would provide older people with enough jobs. Mortgage debt combined with household debt is making us one of the most indebted people in the world. At least, we are still trustworthy enough for our lenders.

patriotz
Member

And right on topic, it’s…. Larry!

High house prices do not derail retirement plans for most

According to the National Household Survey released in early September by Statistics Canada, few Canadians are overspending on mortgages. It found that 59 per cent of homeowners have a mortgage and just 26 per cent of them spend more than 30 per cent of gross household income on housing (Statistics Canada’s threshold for affordability).

Putting aside questions about the reliability of the NHS, these are not reassuring figures. What would the numbers be if mortgage rates returned to just 6%? Larry also doesn’t seem to understand that what matters is the position of those at the margin.

southseacompany
Member
southseacompany

Maclean’s magazine:

“Why owning a home is bad for you.
Efforts to promote home ownership have had troubling and unexpected side effects, distorting the economy and taking an unexpected toll on our minds and bodies

http://www2.macleans.ca/2013/09/29/the-housing-trap/

Softy
Guest
Softy

“Richmond is in more trouble during a large spring melt which would raise the level of the Fraser River (or during a Tsunami.)”

Richmond is where the fraser river opens into the ocean. Spring melts only cause flooding inland.

LOL
Guest
LOL

richmond has little danger of tsunami because the fault lines are west of vancouver island. the island will stop the wave before it reaches richmond.

it is telling that the west coast of vancouver island has a tsunami warning system while the east coast doesn’t.

the problem with this blog isn’t that people post wrong views. the problem is that these wrong views are posted with such conviction and confidence.

Dave
Member
Active Member

I don’t think denial is just limited to the Boomers. I think most people are in denial to a couple major trends:

1. Longevity – People are living longer and longer and this will continue to be the case.
2. Demographics – There are proportionately fewer working people to support retirees now than ever before and this will continue to get worse.

The basic math of the above trends is that people need to work longer. The idea of things like ‘Freedom 55’ will be considered preposterous in a couple decades. That will be viewed as mid-career in our lifetimes.

Laurey
Guest
Laurey

“The idea of things like ‘Freedom 55′ ”

the idea of freedom 55 is peddled by financial sector as their marketing gimmick. you have always retired by 65. now it is increasing to 67. but there is biological limit how long you can extend work life and in what kind of jobs too. i have not seen many construction workers in their 70 or even accountants.

Atomic Frog
Guest
Atomic Frog

@LOL

Do you know that the City of Richmond has electric pumps (they all have backup generators BTW) that work 24*7*365 days to keep water out? Any simultaneous attack on these pumps (earthquake, terrorist attack) that will make them all go offline together will make Richmond a flooded city within a couple of days. I would not worry about tsunami hitting Richmond at all, but an earthquake is a distinct possibility.

ILoveCharts
Guest
ILoveCharts

Fair enough about the Tsunami. It wasn’t really posted with that much conviction – just a quick post with little to no research done. Congrats though. You won an argument on the internet with someone who doesn’t actually care.

Flooding risk from spring melt is still valid.

VultureBoy
Guest
VultureBoy

FYI: Spring melt has historically caused Richmond flooding, and could well do so in the future: The largest flood of British Columbia’s Fraser River on record occurred in May 1894, when rapid snow melt caused river levels to rise dramatically, triggering flooding from Agassiz to Richmond. (Stolen from Wikipedia)

tyler
Guest
tyler

LOL

I could swear Bears are misreading (trouble comprehending) your post. Lol

tyler
Guest
tyler

Vulture Boy:

Now wiki “Dikes”. Find out what they’re used for and when they were built.

Thus is the same problem with bear arguments. Find one thing in isolation and start screaming “flood” or “crash”.

Me thinks it is low IQ.

Snake
Guest
Snake
Softy
Guest
Softy

“that work 24*7*365 days to keep water out”

Any reference for this?

chilled
Member
chilled

“…………while another 19 per cent said they will rent out part of their home for additional income.”

++++++++++++++++++++

Funny. This, from the generation that functioned with an air of superiority, imagined importance, over embellished technical knowledge and a penchant for unjustly telling others what to do.

I predict many more “police incidents” and “elder abuse” to be the result of this rental arrangement.

Sailor55
Guest
Sailor55

#7 Laurey

I retired in 2007 at the age of 56. I spent most of my life planning to be done in the workforce by my mid-fifties.

My goal was NOT accomplished by taking seriously silly bank slogans like “Freedom 55” and “You’re Richer Than You Think”.

One must plan their finances meticulously from the start and continually monitor progress along the way making necessary adjustments.

The main thing I learned: Wealth is best used to bring freedom of choice, not freedom to buy overpriced goods and services in a pointless attempt to keep up with the Joneses.

Today, the Joneses are broke and it’s mostly their own fault.

Dr N
Guest
Dr N

The city of Richmond does operate a set of pumping stations according to its website (http://www.richmond.ca/safety/prepare/city/hazards/flood.htm), but it appears they do not pump continuously. No mention is made of whether there are back-up generators in case of power failure, but it seems likely there are. In case of a major earthquake though (“the big one”) these flood control measures won’t mean much. But, hey, that might not happen for centuries.

Laurey
Guest
Laurey

“Today, the Joneses are broke and it’s mostly their own fault.”

you should also put in disclosure the following: “Real Wages in Canada has not increased since 1970’s”

unlimited
Guest
unlimited

January 1, 2013 marked the last day I held any debt. I effectively retired on this day.

Debt service is a type of slavery, often self imposed, but slavery none the less. Humanity (the Sumerian version) was hard wired to be this way.

The bigger story is that you can’t have an increase in debt without an increase in assets. Where is the increase in assets?

If you look a little closer at the Revenue Canada web site, there are clues. Assets are now created at the flick of the wrist. This is especially relevant for municipalities, who are encourage to unlock ‘common area’ assets from inspired, unlimited ingenuity banksterism.

LOL
Guest
LOL

@Flooding risk from spring melt is still valid.

no it isn’t. as someone else mentioned richmond is at the mouth of the fraser. it is in fact at BOTH mouths of the fraser.

spring melt flooding happens because water is coming in at a faster rate then it is leaving. this causes the river level to rise. if this continues the river level will rise higher than the banks and flood.

unless there is some unnatural event ( like nuclear explosion ) it is impossible for water to flow in at faster than it leaves because the mouth of the fraser can handle a greater volume than further up stream.

you are basically pouring water throw the wrong end of a funnel. if it can enter the narrow end it can’t get backed up. it’s just impossible.

LOL
Guest
LOL

also, richmond knows that an earthquake is possible and they’ve been taking steps to minimize the impact for decades.

sorry but your dreams of richmond disappearing from the face of the earth aren’t going to come true.

the biggest danger i see to richmond in the event of a quake are asian grannies hoarding supplies and creating artificial shortages. the grab all you can as fast as you can mentality is the biggest danger faced by richmond.

mac
Member
mac

God. Is today’s catastrophe flooding? This is dire. In other news, I enjoy seeing the same units come online year after year at the same price and then after, say, four years on the market they might drop 2% off or change from or to an Asian friendly number. Haha. That’s funny.

There’s also this clown in Kits Point who must be very well known to agents. He puts his unit on the market always 20% above what he could possibly get. He’s nuts about his house, his colours, his furniture. He’s the King of Orange paint. Hopefully, he’s Dutch. And never does it sell. Although a few agents have listed it a “sold” on their websites before taking the listing down. Nice trick. Never gets old.

mac
Member
mac

As for Breaking Bad, I was a bit disappointed. I wanted everyone who broke bad to die including Skyler and Marie and Jesse, of course. I wanted complete and total destruction of every one and everything. It must be because I’m a bear and spend too much time here learning about un-mitigatable disasters on the horizon. Try to laugh at yourselves bears, it’ll help get through to the Spring.

Jon Snow
Guest
Jon Snow

We may see peak inventory today, and that only means one thing: Winter… is… coming.

JohnH
Guest
JohnH

My personal favourite “Flood Destroys Richmond” scenario is The Barrier collapsing, allowing Garibaldi lake to drop into Howe Sound and the resulting wave bouncing off the Gulf Islands and drowns Richmond.

http://en.wikipedia.org/wiki/The_Barrier

Scenario 2 is Mount Baker going like Saint Helens. If enough debris blows out the melted glacier flows into the Fraser watershed and Richmond gets buried in dead trees.

In the mean time, they have good bubble tea.

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