While the first group of baby boomers has already begun to leave the workforce, employers can help provide information to those workers who are preparing for their retirement.
“Different employees will have different needs,” explained Jillian Kennedy, partner, investment businessm with Mercer at Benefits Canada’s Benefits & Pension Summit in Toronto.
When thinking about the needs of workers, it’s about where they are in their career, she said. Workers just starting out may need to learn investment basics, and those closer to retirement might not want to learn as much.
Kennedy explained that taking advantage of government programs such as the Canada Pension Plan (CPP) and old age security later in life can result in more retirement income if workers live longer.
“By delaying that social benefit, there is more in the retirement pot,” she said.
Employees should be thinking about saving many years before they retire, explained Sue Reibel, senior vice-president, business development, group benefits, retirement solutions, at Manulife Financial.
She cited a survey that showed 63% of Canadians expect to live on CPP benefits for their retirement. However, the CPP is intended only to replace about 25% of the average industrial wage.
Reibel also noted that future retirees should also consider more than just having enough money for their golden years.
She said they need to think about their lifestyle in retirement, which will be different at age 60 than at 80. Future retirees also have to determine if they want to work part time and think about what their health situation might be.
“People plan for all the great things in retirement,” she said. “They don’t plan for the crap.”
All the articles from the event can be found on our special section: 2014 Benefits & Pension Summit Coverage.
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