Saved Enough for Retirement?

As the nation’s baby boomers head into retirement, the question on many soon-to-be retirees’ minds is, “Have we saved enough?”

Nearly half of boomers say they aren’t confident they are financially secure for retirement. Some plan on working part-time to make up the shortfall while others anticipate selling possessions they don’t use, selling their home or renting out part of their house.

Due to the growth of the aging population, combined with greater life expectancy and a decline in traditional workplace pension plans, future retirement incomes may be at risk.

According to Statistics Canada, the average retired couple spends about $54,000 per year. To generate that income, seniors would have needed to save about $1.35 million for retirement. Half of retirees say they are going to run out of money in 10 years. But there are ways to adjust living expenses by downsizing or taking a part time job in retirement.

The average male born in 1960 will live to 68 and the average woman to 74. This is a sharp rise in life expectancy from people born in the 1930s; men could be expected to clock out at 60 and women at 62.

Living longer, healthier lives is a wonderful achievement however it will require more savings to fund longer retirements. As a result of older Canadians being in better health and better educated, many are delaying retirement and working past 60 or 65.

For a Canadian Retirement Income Calculator, visit servicecanada.gc.ca .