Canadian retirement age pushed back to 68: study
Canadians know they have a ways to go when it comes to retirement planning.
After all, the just-passed RRSP deadline also doubles as a brutal reminder of our savings inadequacies. Only 39 per cent had even planned to contribute this year, meaning, unfortunately, Canucks aren’t exactly Warren Buffett on ice.
But while we’re not planning for retirement on time, we still plan on retiring on time, right? Right?
According to a new study from Sun Life Financial, maybe not.
The survey, released Tuesday morning, shows that Canadians now plan on retiring at the age of 68, three years later than our goal age in 2007.
Such a number might be a slight overreaction to the ongoing recessionary recovery – sort of a, “What? Retirement? Who could think of retirement at a time like this?” thing – but perhaps the downturn has also adjusted our realistic expectations of life after work.
Of course, money still talks. By the Sun Life study, 65 is still the projected retirement age for those making more than $100,000 each year, but for those earning less than $50,000, it’s now 70.
Considering the average Canadian salary is only $42,988, it might stand to reason that the recession has come as a nasty wake-up call. Maybe 65 was an unrealistic retirement age for the majority of Canadians this whole time.
After the downturn, now that you’ve had a chance to re-evaluate your finances, do you still feel you’ll be able to retire on time? If not, how much longer will you have to work?
By Jason Buckland, MSN Money