30% of retirees return to work to pay bills

ING has released the results of a survey they did showing that 3 out of 10 retired Canadians ended up having to return to work to pay bills.

Many retirees simply hadn’t saved enough or underestimated the cost of living.

The surveys portray a notable disconnect between Canadians’ expectations of life after the workforce and the reality of the cost.

ING Direct said that respondents wished they had found more ways to save for retirement, that they had started saving earlier and hadn’t “spent money so mindlessly.”

“The reality of retirement for many Canadians is a sobering reminder that you can’t put your financial future on the back burner,” ING Direct president and CEO Peter Aceto said in a release.

“Among the many other financial priorities we face during our prime working years, we need to make sure that retirement planning doesn’t get overlooked.”

So how are your retirement plans dear reader? Are you betting it all on a house in Vancouver?  Are you just starting out and saving and investing, or are you finding it difficult to put enough aside for your golden years?

Sort by:   newest | oldest | most voted
Newcomer
Member
Newcomer

I don’t plan to stop working until very poor health forces me to do so. I work less now than I did in my 20s or 30s, because I get more bang for my working hour and so need fewer of them. I plan to work less and less as time goes by but I don’t see the need for a hard cut off. The same has been true of my parents, still working a little bit here and there in their seventies.

jesse
Member
We concentrate on stuff like sales and listings and inventory. Here is a quick look at inventory going back to 2005, as of the end of February: year inventory_Feb 1995 17377 1996 17025 1997 17506 1998 17988 1999 15663 2000 14149 2001 14091 2002 10349 2003 9692 2004 7667 2005 10599 2006 8310 2007 10414 2008 11420 2009 16280 2010 10782 2011 11925 2012 14055 2013 14789 The second half of the 1990s saw a steady erosion of prices and inventory was elevated for most of that time. This inventory was slowly chipped away in the early 2000s, and prices started taking off in a major way in 2002 and 2003, around when inventory looked to have bottomed. That started the last major boom from 2003 through to 2008. After the last recession inventory has been generally elevated and price… Read more »
Son of Ponzi
Guest
Son of Ponzi

Already open houses are at record levels for this time of the year.
I was at a few open houses this weekend, and the realtors are saying that sellers are open to any reasonable offers. A far cry from the bidding wars of the past. A lot of new stock is driving the prices of older units down.
2 of the 4 houses that I visited were empty.
I think this spring will be a strong buyers market.

Many Franks
Member
I think we missed this one from Rob Carrick on Friday. Canadians’ excessive debt has made rest of world wary of loonie: Our plunging dollar makes it official. Foreign investors are selling their holdings in this country because they see better opportunities elsewhere. It’s not all high finance in play here. The habits of everyday Canadians play a role, too. Foreign investors used to look at Canada and see a rock of economic stability in an uncertain world. Now, they see an economy that has been fuelled in large part by an unsustainable run-up in debt. Housing market optimists may dispute this, but the pool of people able to take on big mortgages or draw way down on their lines of credit is shrinking. Less borrowing suggests less commerce, which is bad for a Canadian economy that is already running… Read more »
registered
Member
registered

“Canadians’ excessive debt has made rest of world wary of loonie”

What better example to counter the fantasy that national fiscal policies operate in a vacuum? The federal government fathered that debt through mortgage policies driving borrowers to lenders, and insured the lenders profits through the CMHC. The only recent change is the global financial community finally caught on, unfortunately after global finger wagging tours by the two architects of this disaster strutting their cleverness.
Harper might leave a once proud and prosperous nation the broke subject of international ridicule but the banks will do well. For a tiny population sitting on immense natural resources that’s an accomplishment.

BWilson
Guest
BWilson

Good WSJ article outlining serious risks in Canada’s economy and RE market following the terrible jobs report from last Friday:

http://blogs.wsj.com/moneybeat/2014/01/14/canadas-skidding/

YobiKanobi
Guest
YobiKanobi

“The same has been true of my parents, still working a little bit here and there in their seventies.”

Planting roses in their garden for pleasure or work as greeters in wall mart?

Can you see the difference? The article talks about retirees that HAVE TO go back to work because of lack of savings.

Many Franks
Member
More from the “Canadians Are Dumb With Money” files. Should you raid your RRSP to pay debt? Canadians raid their RRSPs for a number of reasons — not just out of desperation, from fear of declaring bankruptcy or under threat of Canada Revenue Agency. A CIBC report found that 1.9 million Canadians withdrew $9.3-billion from their RRSPs in 2008 and 80% of the withdrawals were made by individuals under 60. A Scotiabank poll found that among Canadians who hold an RRSP, 40% have withdrawn funds from it. They do it to buy a home, perhaps through the Homebuyers’ Plan (16%), or to go to school, perhaps through the Lifelong Learning Plan. A Scotiabank poll found that the second-most popular reason to withdraw from an RRSP was to pay off debt (8%). I expected the HBP uptake to be higher than… Read more »
patriotz
Member

@8: “I expected the HBP uptake to be higher than that. ”

HBP is most likely to be used by first time home buyers, and this would indicate that a great many first time buyers don’t have any retirement savings in the first place.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

30 percent? aren’t home ownership rates 70 percent? i wonder how many of these retirees returning to work own versus rent.

obviously owning your home when you retire is better than renting.

Turkey
Guest
Turkey

obviously owning your home when you retire is better than renting.

…holy leap to conclusions, Batman! You’re deliberately missing the point.

Retirement savings and mortgage payments come from the same source. You might as well say “obviously being a billionaire when you retire is better than being broke.” Just as insightful.

UBC in crisis mode
Guest
UBC in crisis mode
According to Sothby’s Canada recent report, high priced property ($4 million +) in Vancouver jumped 48%: “2013 proved to be a year that defied many analyst predictions,” Sotheby’s chief executive, Ross McCredie, said in a statement. “We expect to see continued growth in Western Canada’s high-end housing market, specifically in attached and single-family homes in Vancouver and Calgary.” Sotheby’s says buyer confidence seemed to have returned to Vancouver in 2013, following a 19-month stretch of declining year-over-year sales. There were 2,505 condominiums and attached or single family homes sold for more than $1 million in Vancouver in 2013. Property sales en in the $2-million to $4-million range also jumped 35 per cent, while sales of homes over $4 million rose 48 per cent year over year. The report suggests the strength of Calgary’s luxury home market was aided by various… Read more »
Funky monkey
Guest
Funky monkey

Bull bull bull
My parents sold there house a few years ago.
They live in Spain part of the year. Then come back here and rent.
A good life thanks to selling there home.

Many Franks
Member

The good news just keeps flowing today. Canadian Consumer Debt: Borrowing Limits Reached, CEO’s Refocus On Saving:

Canada’s biggest banks say consumers are reaching the limit on how much they can afford to borrow, and that’s likely to slow loan growth this year.

Royal Bank (TSX:RY) chief executive Gord Nixon said Tuesday that he expects Canadian households will begin to show more restraint.

See if you can spot the difference between “consumers are reaching the limit” and “households will begin to show more restraint”.

taylor192
Member

Retiring with ~$50K/yr requires ~$100K in your RRSP at age 30, then you never have to contribute another dime. Woohoo.

Anyone with a decent job at 25yo should be able to save $1K/mn, reinvest the RRSP returns, and with 5-6% returns have $100K at age 30.

The problem is most 25yos aren’t financially savvy enough to know this, and distracted by all the consumer goods they’d rather purchase.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

yes that is exactly right. but before you can sell a house you need to buy one. i feel the need to say this because i see you’re getting up-voted, so maybe your point went above people’s heads.

Funky monkey Says:
January 14th, 2014 at 8:59 am 13

A good life thanks to selling there home.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

if you’re having problems making ends meet and preparing for the future, i’d suggest moving to saskatchewan. vancouver isn’t for everyone. it’s for people who strive to be the best.

Turkey Says:
January 14th, 2014 at 8:54 am 11
Retirement savings and mortgage payments come from the same source. You might as well say “obviously being a billionaire when you retire is better than being broke.” Just as insightful.

gordholio
Member

Post #17:

You say: “if you’re having problems making ends meet and preparing for the future, i’d suggest moving to saskatchewan. vancouver isn’t for everyone. it’s for people who strive to be the best.”

Congrats. Likely the most insane paragraph I’ve ever read at VCI.

Many Franks
Member

@gordholio: It’s the Crantini talking.

Softy
Guest
Softy

Ok, I was wrong about the soft landing. There has been no landing at all, as home prices return to record highs:

http://www.theglobeandmail.com/report-on-business/economy/housing/canadian-home-prices-return-to-record-high/article16321649/

Newcomer
Member
Newcomer

@7

“The article talks about retirees that HAVE TO go back to work because of lack of savings.”

I know. I wasn’t commenting on the article, I was responding to the Pope’s question, “So how are your retirement plans dear reader?”

My parents switched to consulting, teaching and expert witness work later in life. I know that not all career paths lead that way.

aa4
Guest
aa4

Watch what happens to equities/property when the pension funds switch to net sellers as the baby boomers retire over the next few years.

Same thing with individual decisions in aggregate. When all those boomers go to ‘downsize’ and liberate say 500k in equity.

Melba
Guest
Melba

….The problem is most 25yos aren’t financially savvy enough to know this, and distracted by all the consumer goods they’d rather purchase….

The real problem is that it’s just about impossible to get reasonable returns from an industry (the financial industry) that’s rife with more parasites than the RE industry – especially for a 25 yo.

Paul
Guest
Paul

Dollar approaching 90 cents. Already 10% inflation since last year in ALL imported goods.

Randy Randerson
Guest
Randy Randerson

@22

All the better for me, as boomers sell, equities price come down. Corporate shares will be getting cheaper every year for the next 20 years. Bring on the SALES!

@24

Good, only 23% of my portfolio is in Canadian stocks, rest are diversified in US and international.

wpDiscuz