Boomers plagued by retirement worries

When comparing those who have a solid retirement plan with those who don’t, the difference in a boomer’s peace of mind is very clear. Boomers who have a financial plan are more likely to feel happy (55% versus 31%) or relieved (37% versus 22%) than those who don’t have one.

“Most Canadians recognize the importance of planning ahead to ensure that they are financially ready when they stop working. Yet, it’s concerning that even as boomers approach retirement age, many still haven’t established a comprehensive plan for achieving a financially-secure retirement,” says Patricia Lovett-Reid, senior vice-president, TD Waterhouse.

How do boomers plan to fund their retirements? RRSPs (61%), Old Age Security – Canada Pension Plan (60%) and company pensions (47%) top the list of options, while 39% plan to work during their retirement.

When thinking about retirement, the top fears voiced by boomers were: keeping healthy and active (74%), maintaining their current standard of living (67%) and running out of money (67%).

The TD poll also divided sentiment and feeling by geographical area. Here is a snapshot of the findings.

Ontario

• 65% of Ontarians surveyed worry they won’t have enough money to last through retirement.
• 39% feel financially ill-equipped to navigate retirement.
• 52% feel like they are behind in their savings.
• 24% are ‘scared’ of their looming retirement.
• 49% worry they will lose their family home as a result of their inadequate savings.
• 33% have a financial plan in place for retirement.
• 52% feel they are behind in their retirement savings compared to their peers.

Manitoba, Saskatchewan

• One-third of working boomers in Manitoba and Saskatchewan plan to retire in the next five years (37% versus 25% nationally).
• 61% feel financially ready to retire.
• Seven in ten worry they won’t have enough money to last through their retirement.
• They are the most likely to have a financial plan (45% versus 36% nationally).
• 53% feel behind in their retirement savings compared to their peers.
• To grow their retirement nest eggs, nearly a third (30%) will continue to work.

• 57% of boomers stated they feel unprepared, compared to 42% nationally.
• 79% worry they won’t have enough money to last through retirement.
• 32% have a financial plan in place for retirement.
• 64% feel behind in their retirement savings compared to their peers.
• 46% say they will keep working to fund their retirement.
• 79% feel they will not have enough money to last through retirement.
• 75% worry about maintaining their current standard of living.

• 65% worry their retirement nest egg will run out too soon.
• 30% say they are working hard to build up their savings, but report they are more than ten years away from retiring.
• Only 35% have a financial plan in place for retirement – the lowest in the country.
• The top three ways boomers and pre-boomers in Atlantic Canada plan to fund their retirement are: Old Age Security and Canada Pension Plan (75%), RRSPs (54%) and company pensions (46%).
• 50% feel like they are behind where they should be in terms of retirement savings compared to their peers.
• 26% will fund their retirement by continuing to work.

• 7% feel ‘very well-prepared’ for retirement.
• 78% percent say they worry that they won’t have enough money to last through retirement.
• 42% have a financial plan in place for retirement.
• Albertans are among the most likely in the country to work during their retirement to supplement their savings (46% versus 39% nationally).
• The top three ways they plan to fund retirement are: Old Age Security and Canada Pension Plan (72%), RRSPs (70%) and company pensions (49%).
• They are among the most likely in the country to say that their top fear about retirement is maintaining their current standard of living (77% vs. 67% nationally).
• 78% worry about not having enough money to last through retirement