Boom or bust?
Even though they will live longer than any other preceding generation, it’s been estimated that one-third of all Baby Boomers have nothing – zero dollars – saved for retirement by age 58. At the same time, cash-strapped governments are rapidly changing the rules to retirement benefits. Corporations are relinquishing their obligation to provide guaranteed pension plans. And lower interest rates and increased market volatility have significantly increased the challenge for individuals who now have to create their own reliable, sustainable retirement income stream.
- 70% of working Canadians DO NOT have a company sponsored pension plan
- 80% of working Canadians DO NOT have the lifelong income guarantee of a Defined Benefit Pension Plan
- 90% of working Canadians DO NOT have a financial plan that explores their capacity to fund their desired retirement lifestyle
- 99% of working Canadians DO NOT have a retirement income plan that optimizes their income and minimizes taxes
- Less than 50% of working Canadians have saved enough money for retirement
Despite these alarming numbers, the financial services industry continues to steadfastly ignore the needs of those who are entering – or living through – their drawdown years. Instead, the financial services industry remains fixated on serving the needs of those who are still contributing to their savings.
If this were an epic doomsday movie, a brilliant scientist or a bold adventurer would solve the problem, save the world, the sun would shine again, and the screen would fade to black for the credits. But this movie is more of a documentary than fiction and the reality is that there is no way to save everyone.
Thankfully, the movie isn’t over yet. We still have time to rewrite the ending so more Canadians can enjoy a financially sustainable, life-affirming and enjoyable retirement.