At this time of year most people are thinking about topping up their RSP to get a bit of a tax break, but unfortunately some Canadians are making plans to cash out their RSP before retirement to pay for living expenses.
As politicians wring their hands over Canadians’ lack of retirement savings, figures obtained by Global News from years of tax filings indicate a significant jump in the number of Canadians making early withdrawals from their RRSPs – not for housing or education, but simply to make ends meet.
The biggest increase was from 2007 to 2009, when 1.86 million Canadians took out RRSP cash early. That figure dipped slightly by 2012, to 1.82 across Canada, but remains about 7 per cent above 2007 levels nationally, 12 per cent above 2007 levels in Quebec and almost 10 per cent above in comparatively wealthy Alberta.
Read the full article over at Global News.
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?