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?

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UBC in crisis mode
Guest
UBC in crisis mode

I cannot believe CBC The National last night (regarding Vancouver housing) dropped the ball.

The average price increase of 5.5% is meaningless, if you know that those $4 million + property sales jumped 48% last year.

Clearly there are two markets for SFH in metro Vancouver:
1. Below 1 million. If you have household income of $200,000, 25% down, then you can afford it (who got $200,000 a year? 0.5% population?)
2. Above 1 million, all foreign money, in cash, bank not involved, debt is NOT a concern.

aa4
Guest
aa4
Interest rates are set by supply and demand between accumulated money vs. economic activity and opportunity. So like now when we have insane amounts of capital, and very little opportunity.. interest rates need to be lower than they ever have been in our history. Even with emergency 1% central bank rates, the inflation rate for 2013 was only 0.9%. Far below the target of 2%. If interest rates are ever to rise it is not all bad news, it means there is economic opportunity. What needs to happen is some portion of that immense overhang of accumulated money needs to come out and be spent in the economy. Which there is some natural ways it will, like once the pension funds which are accumulating money now for when the boomers retire, switch to liquidating assets and funding those pensions. Another… Read more »
Paul
Guest
Paul

Federal gov plans to double the number or foreign students???

Couples are coming under this program to have babies. Who get automatic citizenship. My wife’s friend is a midwife and her private practice is booming.

As of last count, there were 3 million Canadians living permanently outside.

Many Franks
Member
Active Member

@jesse: Agreed; the longer we continue emergency low rates the longer it seems they stretch ahead of us. But between the American economy, the bond market, and the Bank of Canada, presuming a continuation of rates around 1% for 25 years seems a little foolhardy. Not to mention that continued debt accumulation will jog Flaherty’s elbow if nothing else, and he’ll be thinking about Toronto and the rest of the nation, not Vancouver.

Any discussion of “improved affordability” hinges on massive long-term assumptions about interest rates. Seems worth mentioning, no?

jesse
Member

“any discussion whatsoever of debt levels”

High levels of debt, goes the argument, are predicated on low rates that are here for a very long time. I don’t know if that is true but as of now nobody can really refute it. So keep playing the music.

George
Guest
George

Federal government plans to double the number of foreign students in Canada:

http://www.vancouversun.com/news/national/Ottawa+aims+double+number+foreign+students/9388022/story.html

patriotz
Member

@37: ” In the USA the average person moves houses every 6 years. ”

That number includes renters as well as homeowners, the former including transient groups such as students and military.

Look at sale records on Zillow and it’s clear the average time between property sales is a lot bigger.

Many Franks
Member
Active Member

Canadian home prices rise, prompting creative solutions

From the video… Mortgage helpers, parents helping, “don’t worry it’s just Vancouver SFH skewing everything else”.

Phil Soper (Royal LePage) says “It’s monthly payments that drive home sales, not the actual, uh, capital cost of the home, and if you look across the country, affordability improved in the latter half of 2012 and the first half of 2013, which has brought people back to the marketplace.”

Conspicuously absent: any discussion whatsoever of debt levels, interest rate prospects, documentation fraud, etc.

gah
Guest
gah

I love skiing, mountain biking, have good friends, a good job, and think the nightlife ain’t bad. I love living here, and so I live here. *drops microphone*

tedeastside
Member
tedeastside

ok tell us how Vancouver rocks, we’re waiting

gah
Guest
gah

@tedeastside
With all of the economic, cultural, social, and weather related misery you go through living here, I can’t believe you can muster the strength to tell everyone about how much Vancouver sucks. Every day. Ten times.

aa4
Guest
aa4

#35.. one reason British Columbians are lazy is because when we were logging all those trees and selling them for big money, nearly everyone was given very generous pay and benefits. This is the type of entitlement mentality seen in other resource based nations like the middle east. Its a reason so many new immigrants here end up doing well. They aren’t waiting for handouts because they ‘deserve’ them. They weren’t even here when BC was overflowing with cash.

aa4
Guest
aa4
I feel the lower inventory numbers partly reflect the average person in the society not having the money to afford to move often. And the sheer price of houses making transactions costs too expensive. In the USA the average person moves houses every 6 years. The median US house price is around 200k. And I believe every US metro area of more than 1 million people has a higher average income than Vancouver. Working in banking I was able to view people’s accounts going back into the 90’s. And one striking thing was how the bulk of the population is making about the same money as in the mid-90’s. But back then things were much, much cheaper. Another striking thing was looking at how people had more savings back in the 90’s, than the same people had savings almost 20… Read more »
jesse
Member

Burt and VMD, the volume of sales is somewhat tied to population and population growth, the observation is that inventory needs to drop significantly for there to be a “bottom” for the housing market. I do not see such conditions manifesting themselves in 2014 given the advent of tighter capital costs, a healthy supply of housing, a potential rebound in housing/construction/capex activity outside of Vancouver, and mediocre population growth. The persistent levels of inventory elevated from the lows not even 10 years ago indicates to me the market is not due for another updraft in the next year.

tedeastside
Member
tedeastside

‘Vancouver is for people who strive to be the best’…LOL best comment
well it doesnt show in the economy or Vancouver’s status.

Seattle has Boeing, Microsoft… Vancouver has 1-800 got junk!!
Vancouver has never produced a single useful company or anything notable in it’s history

seems vancouverits are the least ambitious, most lazy people on earth
any business person from somewhere else will tell you that

VMD
Member

@ Burt
If you account for effect of increasing population and housing stock on Inventory, you should do the same for Sales.
February Sales (last 10 years)
2004:3066
2005:3068
2006:2941
2007:2859
2008:2676
2009:1480
2010:2473
2011:3097
2012:2545
2013:1797

What Sales number do you think would more accurately reflect the same Sales conditions as 3066 sales did in 2004?

Burt
Guest
Burt

@ Jesse

The late 90’s had inventory levels of high 17000.

The housing stock since then has increased drastically, particularly when accounted for the amount of condos built.

17000 today, thought a high number, wouldn’t reflect the same amount of outstanding inventory as it did in the 90’s relative to the total housing stock.

Do you think that we would see weakness at 17000 listings even today?

What number do you think would more accurately reflect the same inventory conditions as 17000 did in late 90’s?

Thanks!

patriotz
Member

Bank CEOs ‘should be worried’ about real estate: TD’s Clark

Well if bank CEOs should be worried, homedebtors and taxpayers (who are backing up their mortgages) should be a lot more worried.

paulb
Member

New Listings 237
Price Changes 53
Sold Listings 53
TI:12219

http://www.paulboenisch.com

patriotz
Member

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

You are forgetting that the equity markets are global. RE is local.

Also rich people, who as we know are getting richer, aren’t interested in buying someone’s house in Surrey but are interested in buying stocks.

Son of Ponzi
Guest
Son of Ponzi

5% return compares quite favorably to the negative returns that home”owers” are getting these days.

kabloona
Member
kabloona

#27: I reckon 5-6% return with CPI running as low as it is right now compares quite favourably to an 8-10% return a decade ago….

😉

Just my $0.02 (inflation adjusted)….

taylor192
Member

#23 Melba

5-6% is attainable today without much risk, although I hear ya about higher returns. I miss the 8-10% without much risk of a decade ago.

Randy Randerson
Guest
Randy Randerson

With low interest rate for the year because of out poor economy, anyone here taking out LOC to buy stocks?

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.