Retirement security starts at home: Introduction
Retirement’s a hot topic these days, but most people don’t get it that retirement security starts at home. Will we be financially able to retire? How can we fund a retirement that may last 30+ years? How much money will we need to retire? Is there such thing as retirement security?
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Retirement security starts at home: Global Retirement Index
The latest Global Retirement Index delivered good news and bad news for Canadians. The good news is that when comparing the state of retirement security in 43 countries around the world, Canada ranked 10th, up from 12th last year. In case you’re wondering what countries were in the top three spots, they were Norway, Switzerland and Iceland. Our neighbour to the south, the U.S. ranked 14th.
Retirement security starts at home: How long will my savings last in retirement
Canadians are asking themselves “how long will my savings last in retirement”. The bad news is that Canadians are underestimating how much they should be saving for retirement.
- 72% of Canadians surveyed identified retirement saving as their highest financial priority, however many believed they would need to replace only 60% of their income after retirement. Planning professionals typically work on the assumption that you need to replace 75-85%.
- Canadians reported setting aside an average of 10.5% of their annual income for retirement. The international average is 12.2%.
- Only 55% of Canadians take part in workplace-based savings programs.
The reality is that many Canadians are underestimating how long they’ll need their savings to last. It’s not uncommon for Canadians to live well into their 90s and some will even reach 100. This means that you may be funding a 30+ year retirement. For many Canadians there will be no such thing as a retirement security plan.
Retirement security starts at home: Do you have too much debt to think of retirement savings?
So as you can see, it really is true that retirement security begins at home. You can’t have a secure retirement if your house is full of debt. If you’re struggling with debt, now is the time to see a professional trustee. We can help you free yourself from debt, so that you can start saving for your retirement. Contact the Ira Smith Team today so that Starting Over, Starting Now you can work towards retirement security.
