Gain a better understanding of what retirement looks like for Canadians with these key stats.
Your retirement will look a lot different than your parents’ retirement. In fact, your retirement will probably look different than everyone else’s because your lifestyle and goals are unique to you.
There are, however, some major retirement trends unfolding. And getting a better understanding of these changes will help you plan for your retirement.
1. We are on track
Despite many warnings to the contrary, recent research has revealed that 83% of Canadians are financially on track for retirement.1
2. We are retiring early
The majority of us are not working through retirement. Actually, we are retiring early. The average retirement age in Canada is 63.2
3. We are living longer
It’s quite extraordinary: every year that goes by, Canadians live longer. At age 65, the average lifespan of men and women is now 84 and 87, respectively.3
4. People are retiring with mortgages
In a significant change from what was the historical norm, about half of Canadians are carrying a mortgage into retirement.4
5. “Encore” jobs are on the rise
With longer retirements come the desire to find fulfilling activities. While many retirees use their retirement to travel and spend time with their friends and families, others return full- or part-time to the workforce – and not out of necessity. Encore jobs5 will be a distinct possibility for many Canadians who are not yet retired.
While retiring early and living longer can both be good, they underscore the need to start planning early. Contributing to your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) are two of the best ways to make sure you’re on track for retirement.
To learn more about saving and investing for your retirement, talk to your financial advisor and visit AGF.com/RRSP.
1 Source: McKinsey, “Building on Canada’s Strong Retirement Readiness,” 2015, pg. 5
2 Source: StatsCan, http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=2820051
3 Source: StatsCan, http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/health72a-eng.htm
4 Source: http://business.financialpost.com/personal-finance/mortgages-real-estate/half-of-canadians-plan-to-retire-with-mortgage-survey
5 Source: http://www.thestar.com/business/personal_finance/retirement/2014/08/24/encore_jobs_a_new_trend_in_retirement.html
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