Wednesday, August 16, 2017
Funding your retirement
A recent Equifax study that found seniors’ debt levels increased 6.1 percent in 2016 versus the national average of 3.1 percent, adding the average senior now carries about $16,000 in debt.
We have a different mentality when we compared retiring to today to the experience of past generations. To that end, a lot of seniors — and, for that matter, folks saving for retirement — could use the help.
It used to be that if you had a house, it was paid off before going into retirement, but today it’s becoming more common for people to have a mortgage or line of credit going into retirement.
Natixis Global Asset Management, one of the largest wealth management firms in the world, conducts an annual survey of investors. Here’s the snapshot of its findings for Canadian investors.
· Personal savings and investments are most important retirement funding source:
· 97 percent indicated personal savings and investments were important.
· 77 percent indicated family sources would be important, too, including inheritance, their spouse, and even their children.
· 74 percent said government programs would be important.
· 54 percent would rely on the sale of their home or business.
Planning for retirement:
· 77 percent have a general figure in mind for how much they will need to save for retirement.
· 60 percent know how much income they need annually to fund their desired lifestyle in retirement.
· Most Canadians feel it is increasingly their responsibility to fund their own retirement:
· 78 percent feel funding retirement is increasingly their responsibility.
· 32 percent don’t believe government benefits will still be available when they retire.
Not saving enough is the biggest threat:
· 30 percent indicated they worried about not saving enough.
· 18 per cent worried about long-term and health-care costs.
· 14 per cent worried about inflation.
· 13 per cent concerned government pension wouldn’t cover their expenses.
· 12 per cent feared to outlive assets.
· Seven per cent worried about investment returns not measuring up.
· Five per cent worried about the death of a spouse.
Canadians are feeling increasingly on their own when it comes to saving for retirement and then managing their money once retired. Only six in 10 had a clear picture of how much they need annually to fund their desired lifestyle in retirement.