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.