A new study published by the Broadbent Institute suggests that 15-20 percent of middle-income Canadians retiring without an employer pension plan have saved anywhere near enough for retirement.
The demographic planning for their retirement, aged 55 to 64, may be facing a serious drop in standard of living if their personal savings cannot cover the difference. Currently, about 47 percent of Canadians do not have an employer pension program, and face tough prospects when it comes to retirement. This problem could lead to more seniors slipping below the poverty line, if this trend continues.
“Even if you assume a decreased need or if you liquidate your home equity, the news is still very grim,” Rick Smith, executive director of the Broadbent Institute, told CBC News.
“We’re looking at a situation in our country — 10 years down the line, 15 years down the line — where millions of Canadians have very little disposable income and that’s not good for the economy.”
As far as the numbers go, about half of those surveyed have enough money to supplement their income for 1 year, while fewer than 20 percent have the ability to support themselves up to 5 years into retirement.
How are you feeling about your retirement?
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