A lot of people talk about how much they can’t wait to retire. Some have daydreams about winning the lottery and going on to live an exciting yet relaxing life on as many beaches as they can find. Others just enjoy talking about a time when they no longer have to get up every morning to get ready for work.
Interestingly, however, most are not legitimately thinking about how they will spend their retirement years. A recent report by the BMO Retirement Institute discovered that less than half of Canadians are nearing their retirement ages have a strategy in place to afford being retired. Sadly, about two thirds of the nation haven’t considered that they could possibly outlive their savings.
According to a QMI Agency report that was published yesterday, the majority of Canadians are just not sure what they’re going to do when they’re no longer working. It is, of course, fun to talk about retiring. However, many seem to be headed towards a very harrowing situation that may see the lack of regular income become a major hardship in their latter years.
The report reveals that the BMO study concluded that only 48% of those polled have a plan in place to structure their investments in such a way that it will support a life in retirement. The majority of those polled are under the impression that unknown factors may arise that could affect the stability of their finances.
Tina Di Vito, who is the head of BMO Retirement Institute, believes that Canadians need to more seriously concern themselves with this time in their lives. Neglecting to consider one’s retirement years can seriously impact one’s lifestyle. Clearly, it’s important to have your finances in order to support a life without generating a steady income.
Said Di Vito: “As Canada’s boomers draw closer to their retirement years, having a strategy to manage investment income throughout retirement should be a top priority. Financial resources available through programs such as the Canada Pension Plan and other pension schemes likely won’t be enough to support the average retirement lifespan.”
QMI points out that nearly all baby boomers in Canada will be eligible for retirement within the next two decades. Most, however, fear that their savings will not be able to cover their living expenses once they are no longer working.
Those in the 55 to 65 age group are encouraged by BMO to closely look at their investments to ensure that they can support their lifestyle of choice once retired. Retirement, of course, is always something great to daydream about. It would be a shame to have it become a nightmare through poor planning.