Canadian boomers age 50 and up are concerned they haven’t saved enough for retirement, according to a new survey by the Royal Bank of Canada.
It found the savings gap varies widely. Those with investable assets of more than $100,000 want to save, on average, $949,000 but are falling behind by $275,000, while those with investable assets of less than $100,000 want to save, on average, $574,000 but are more than $500,000 from that goal.
“When you peel back the layers, many boomers worry about their savings shortfall because they just don’t know where to start,” said Rick Lowes, vice-president of retirement strategy at RBC, in a press release. “The best approach is to start with expectations, including the lifestyle you hope to lead in retirement, retirement income options and then build a plan to get you there.”
The survey found that not-yet-retired boomers are considering a range of options to help boost their retirement income, including downsizing/moving (52 per cent), working in retirement (41 per cent) and borrowing against home equity (25 per cent).
“No one should be relying on an inheritance or a lottery win,” said Lowes. “We also don’t want anyone feeling discouraged by unrealistic savings goals or thinking they don’t have enough time. Concerns like these can be overcome by taking control of your finances.”