More Retirees Destined For The Poor House
Filed under: Family Finances, Retirement and RRSPs, Saving
Retirement is not normally top of mind for Canadians aged between 25 and 30, but a new report has found that as many as 44% of future retirees in this age group will not have enough money to adequately fund their lifestyles.The study, conducted by independent social policy and economics think tank C.D. Howe Institute, says that Canadian retirees risk a significant drop in living standards if current trends and behaviours continue. At present, only 16% of retirees find themselves in circumstances that require them to significantly reduce how much they spend once retired.
C.D. Howe says Canada's retirement system has performed relatively well over the past few decades. However, projections for the future using data such as income from registered pension plans (RPPs), registered retirement savings plans (RRSPs), individual savings and home equity, has revealed a disturbing trend. More than two in five retirees, 40 years from now, will experience a significant drop in living standards.
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