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Many Canadian pre-retirees don’t feel prepared for retirement

By Warren S. Hersch

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Nearly one in four Canadian pre-retirees lack confidence in their ability to live comfortably in retirement, new research shows.

LIMRA, Windsor, Conn., released this finding in a summary of results from a new survey, which reveals that 24 percent of Canadian pre-retirees (working, age 50-65 with at least $50,000 in investible assets) are not confident they will be able to live comfortably in retirement.

Additionally, about half of the retirees expect to have a lower standard of living compared with their existing lifestyle.

These results are similar to LIMRA research of pre-retirees in the U.S., which found that less than half of pre-retirees (age 55 to 70 and not retired) felt confident they will be able to live their desired lifestyle in retirement.

 “Just as we have seen in the U.S., pre-retirees in Canada have not consistently saved or developed a formal plan for retirement,” says Sally Bryck, associate research director, LIMRA Retirement Research. “Our research found most pre-retirees in Canada saying they need more knowledge to help them prepare for retirement.”

LIMRA’s study finds that while 7 in 10 pre-retirees in Canada have a dollar amount in mind that they will need to have saved or invested to ensure living comfortably in retirement, few (seven percent) have formal written plans.  In addition, one quarter of pre-retirees has never saved regularly for retirement; and a quarter remains uncertain when they can retire. 

According to the survey, the majority of pre-retirees in Canada have neither estimated the amount of guaranteed income they will need in retirement nor the income they will receive in retirement.