Wednesday, November 11, 2020

Mackenzie Retirement Reality Check 2020

 Here is the article.

Here are highlights:

  1. At age of 62, compared to retired 57 year old

The study, conducted by Pollara Strategic Insights, revealed significant differences in the retirement dynamics of working Canadians compared to those who are already retired:

  • Working Canadians expect to retire, on average, at the age of 62 (the average retirement age was 57 for those already retired).
  • They anticipate requiring more than twice as much in retirement savings ($878,000) compared to current retirees (who reported having, on average, $427,000 in savings when they retired).
  • Almost half of those who are not yet retired (45 per cent) plan to continue working in some capacity (versus just 9 per cent of those who are currently retired).
  • Non-retirees also have higher expectations for their ideal retirement lifestyle, with 76 per cent planning to travel extensively (versus 44 per cent of retirees).
  • Further, 51 per cent of those not currently retired expressed a desire to be involved in philanthropic initiatives (versus 33 per cent of retirees).

Further contributing to the shifting dynamics of retirement is the relative decline of defined benefit pension plans, longer life expectancy, low yields, increasingly complex financial markets, and higher costs of living, including housing and health care.

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