Sunday, August 13, 2017
Retirement planning concerns of boomers in 2017
As Boomers, we are faced with a new reality, our retirement could last for 30 years. Yet, a 2017 study by the Royal Bank of Canada (RBC) found that three of our top retirement concerns are. longevity-related
a. Maintaining our standard of living (39 percent)
b. Having enough savings (37 percent)
c. Covering health care costs (34 percent) –
only one third (33 per cent) indicate they’ll adjust their retirement lifestyle plans to prepare for three decades after they retire.
“Thirty years in retirement should be a huge gift of time when you can do what you want when you want – but you need to connect the dots between living longer in retirement and preparing for those additional years,” advised Yasmin Musani, Director – Retirement Client Strategies, RBC. “If you’re in your 50s and haven’t considered all of your retirement options – and yes, making adjustments – it’s not too late to plan how to get the most out of all of your retirement years.”
The RBC Financial Independence in Retirement Poll also found that almost half (46 per cent) of Canadians aged 55+ felt they were financial “somewhat short/nowhere close” to where they anticipated they would be at this point, in terms of their retirement savings.
Their #1 question: “Will I have enough money in retirement?” When you ask this question of yourself, the answer should be: What do you want to do when you retire and once you decide this, then take a look at how much money that will take. Think about your goals in retirement and talk to your significant others about retirement lifestyle before you focus on the finances, and remember there’s no ‘one size fits all’.
Start your retirement conversation by asking themselves a few questions:
· Where will you want to live?
· Do you have any travel plans in mind?
· Will you be providing any assistance to younger or aging family members?
· Have you discussed your plans with people close to you and with a financial advisor?
Like me, you may find that your priorities, change or shift as you approach and then enter retirement. That’s why it’s so important to have a conversation about your retirement thoughts with the key people in your life and then to sit down with a financial planner, to ensure you’re taking all your options into consideration. Retirement plans need to be fluid, to adjust as you approach retirement – and flexible enough to support the lifestyle you lead once you are retired.
According to the RBC survey, the top 6 retirement questions on the minds of Canadians 55 plus are:
46%: Will I have enough money in retirement
26%: How do I make the most of the money I have saved
20%: How will I deal with inflation in retirement
19%: What lifestyle changes should I expect in retirement
15%: How will I manage debt in retirement/How will I earn income while I’m retired
13%: Should I downsize/sell my home
According to the same survey here are the top 6 activities retired Canadians are doing in retirement
62%: Taking time for myself
45%: Spending more time with my spouse/partner
43%: Getting more rest
38%: Improving my health
32%: Spending more time with my family (other than my spouse /partner)
These are some of the findings of the 27th Annual RBC RRSP Poll conducted by Ipsos from November 25 to 30, 2016 on behalf of RBC Financial Planning, through a national survey of 2,033 Canadians ages 18+ who completed their surveys online