Canadian Boomers, on average, are currently over C$400,000 short of their individual retirement savings goal, according to a recent study conducted by the Bank of Montreal (BMO) Wealth Institute.
There are myriad reasons for the troubling statistic ranging from nest eggs which were ravaged by the markets during the global financial crisis, to the transition from defined benefit plans to defined contribution plans and simple inadequate planning. But the reasons for the rampant underfunding are becoming more and more irrelevant as the oldest of the Boomers turned 65 in 2010 and waves of others are rapidly approaching retirement age.
Nearly half of Canadian Boomers reported that they were not confident they would be financially secure in retirement, up 20 percent since 2006.
The study found that Canadian Boomers will need, on average, C$658,000 ($626,566 USD) to feel financially secure in retirement. They have only saved, on average, C$228,000, which renders them C$430,000 short of what is needed.
Although Canadian Boomers stated that they would like to retire when they reach age 59, many will have to work until 63.
And 63 may not be the end of it. Seventy-one percent of respondents stated that they expect to take a part-time job in retirement in order to generate extra income after they officially retire.
Forty-four percent will sell off collectibles or other possessions to generate income while 32 percent reported they would sell their home. Nineteen percent said they would rent part of their home to supplement their income.