Pensioners fear they’ll run out of money

48% retired earlier than they expected



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How are Canadians faring in retirement? Are they retiring when planned? A new report from Angus Reid shows many fear they’ll run out of money.

  • Nearly half (48%) of the retired Canadians surveyed agreed with the statement: “I’m worried about my money lasting my lifetime,” while roughly one-in-five (19%) strongly agreed. This anxiety is shared by substantial numbers of retired Canadians from all walks of life.
  • Less than half (46%) of retirees say they retired when and as planned. The rest retired earlier (48%) or later (6%) because of circumstances outside their control.
  • Retired Canadians are considerably more reliant on government and work pensions to finance their retirement than still-working Canadians expect to be when they retire. And, while a fairly concerning one-half (48%) of the already retired are worried about outliving their money, this anxiety is shared by three-quarters (74%) of Canadians who are not yet retired.

Retirees surveyed highlighted the following primary means of financing their retirement:

  • Government pension –57%;
  • Employer pension – 53%;
  • RRSPs – 30%;
  • Other investments – 13%;
  • Downsizing/selling assets – 6%; and
  • Other sources (including: inheritance, support from children, etc.) – 11%.

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2 comments on “Pensioners fear they’ll run out of money

  1. My wife and I work for high end restaurants and we have no workplace pensions or benefits but our employer pays us decent wages working Monday through Saturday.

    We work 55 hours a week each and work 48 weeks a year and get 1 month paid off vacation. We don’t collect tips and earn $52,000 a year each $104,000 a year.

    The bottom line is are 45 years old, we have 2 kids 14 and 10 years old, a paid off modest size house, no debts and live quite well taking a vacation every year.

    We were always good savers and debt adverse. Our financial plan over the years is working well, we have $615,000 in RRSP’s, $94,000 in TFSA’s, $65,000 in RESP’s, $150,000 in GIC’s, $35,000 in cashable GIC’s, term deposits, savings accounts.

    We maxed out all our RRSP’s, TFSA’s, RESP’s as much as possible and we use compound interest bonds to make them reach our goals and then some more. We make sure that all our RRSP income tax refunds are reinvested.

    In 2015, we contributed $18,720 to our RRSP’s, $22,000 to our TFSA’s, $5,000 to RESP’s, $12,000 in GIC’s. We are using longer term government strip bonds at 3.37% in 2015.

    So far the last 18 years, we have averaged 4.58% with our RRSP’s, TFSA’s, RESP’s, GIC’s, government bonds, cashable GIC’s, term deposits, savings accounts etc.

    By retirement, at 64 to 66, we will probably have about $3,500,000 to $4,000,000 at 3.5% to 4.0% interest rates. Bond yields on government bonds should be normalize in the 3.75% to 4.00% over the next 18 months to 3 years.

    C.P.P., OAS will be around 20% of our total retirement income and should not be one’s main source of retirement income.


  2. We have planned very carefully and proactively for our retirement. We are both 55 years old and have no workplace pensions just C.P.P, OAS at 65 years old.

    We knew that RRSP’s and taking annual RRSP income tax refunds and not blowing it but actually saving and investing that was are best option to meet our future financial goals. Here we are with a $450,000 house just paid off in 2013 after 18 years, we have now $585,000 in RRSP’s as we have been saving since our 20’s and with $89,000 TFSA’s. Our 3 children will be well covered as we have $65,000 in RESP’s and another $35,000 in GIC’s set up just for their education.

    We will be getting about $35,000 a year in C.P.P, OAS in 10 years and our RRSP’s will be worth about $900,000 in 10 years as we have staggered compound interest zero coupon bonds both corporate, government and 10 year compound interest GIA’s through a few Canadian life insurance. We started putting $600 a month in dividend paying stocks and REIT’s in 2013 which we have $20,000.

    We are estimating that in 10 years, we will have $150,000 in these investments. We also have some money in a higher interest savings account, short term deposits that rollover every 30, 60, 90 days which are now $10,000 and $50,000 respectively. This is our contingency, accessible pot of money.


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