Much like in the U.S.
WINDSOR, Conn., Jan. 22, 2013—Twenty-four percent of Canadian pre-retirees (working, age 50-65 with at least $50,000 in investible assets) are not confident that they will be able to live comfortably in retirement and about half of Canadian pre-retirees expect to have a lower standard of living compared with their existing lifestyle, according to a new study by LIMRA.
This is similar to LIMRA research of pre-retirees in the U.S., which found that less than half of pre-retirees (age 55 to 70 and not retired) felt confident they will be able to live their desired lifestyle in retirement.
“Just as we have seen in the U.S., pre-retirees in Canada have not consistently saved or developed a formal plan for retirement,” said Sally Bryck, associate research director, LIMRA Retirement Research. “Our research found most pre-retirees in Canada saying they need more knowledge to help them prepare for retirement.”
LIMRA’s study found that while 7 in 10 pre-retirees in Canada have a dollar amount in mind that they will need to have saved or invested to ensure living comfortably in retirement, few (seven percent) have formal written plans. In addition, one quarter of pre-retirees have never saved regularly for retirement and a quarter remain uncertain when they can retire.
According to the survey, the majority of pre-retirees in Canada have neither estimated the amount of guaranteed income they will need in retirement nor the income they will receive in retirement.
“Without a clear understanding of their expenses in retirement or the income they can expect to receive, pre-retirees will not be able to develop a credible retirement plan and ensure a secure financial future,” noted Bryck. “Financial advisors can play an important role in helping these pre-retirees as they prepare for retirement by identifying savings goals, developing a plan to help them manage their current finances so they can meet them and establishing a formal written retirement plan that captures a long-term strategy for meeting their financial goals in retirement.”