Nearly three quarters of Canadians say they won't have enough money to retire
Amid skyrocketing costs of housing and living in general in a number of major Canadian cities, it's no wonder that most of the country's population is worried they won't ever be financially stable enough to retire in the traditional sense.
New stats released by Scotiabank show that a staggering 70 per cent of Canadians don't think they'll be able to save enough by retirement age to be able to stop working — about half anticipate having to rely on family for help in their old age, and more than half think they'll have to re-enter the workforce some point after trying to retire.
I've worked, and worked hard, often 2 and 3 jobs at once, to make life work in #Vancouver ... and after, over 30 years, I am exhausted. I likely will never be able to #retire and that really upsets me.— Sandie (@SarcastiKnitter) July 3, 2019
Data from the bank chain's Retirement Survey and Investment Poll says that the average Canadian thinks they may need around $700,000 in savings by the age of 64, when most expect to be able to retire.
But, as that age approaches, most people also believe they have severely underestimated this amount — which, Scotiabank says, they have, as retirees looking to be "safe and secure" should have closer to $1 million.
I’ve managed to stay out of debt but definitely live paycheque to paycheque. If I do travel it’s planned way in advance so I can actually afford it. Lots of working poor in Canada.— Lucy 🇨🇦 (@TheBlueGem3) January 17, 2020
But, more pressing financial demands associated with a generally rising cost of living mean that less than a quarter of residents are able to make saving for their retirement a top priority right now.
This is an issue especially prevalent in 18 to 35-year-olds who are busy paying off student debts and trying to secure long-term housing amid volatile markets for both homebuyers and renters.
Exactly, and also even rent is now unforgiving. It's either you move out to the middle of nowhere, away from work/family/medical resources/school/etc. Or you pay through the roof for a small apartment. Prices just keep going up too.— Scarlett's Writing (@OfJoyAndSorrow) January 24, 2020
Most young people seem to know that there are many things our parents had that will forever be out of our financial reach — the prospect of owning a home is surely an antiquated, hopeless one given current prices — so maybe adding comfortable retirement to the ever-growing list isn't that much of a shock.
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