There is a familiar thought that you go to school, work for a few years and then enjoy a peaceful retirement where you can check off the things on your bucket list. But what if your life no longer meets that mould? Do you actually have enough retirement savings to allow you to retire on time? Have you consistently put off retirement planning because you feel you have plenty of time to figure it out?
The result of this way of thinking is that many Canadians who have reached the age of retirement are continuing to work even after they leave their jobs – and many millennials don’t have a retirement savings plan at all.
Stats Canada listed these interesting statistics about the current state of the Canadian work force:
- According to the 2011 NHS (National Household Survey), workers aged 55 and over accounted for 18.7% of total employment, compared to 15.5% in the 2006 Census.
- In 2011, just over 3 million people aged 55 and over were employed. The employment rate for this age group was 34.9% compared to 32.2% in the 2006 Census.
This means that the number of people in the workforce aged 55 and older is surging, with 36% of the 10.6 million Canadians age 55 and up actively working or seeking work. So what could be causing this rise in longer employment stints for those who are at retirement age? It boils down to two important factors: We are living longer, and we are saving less.
According to the Broadbent Institute, Canadians aged 55 to 64 who do not have access to a company pension have less than half of what they need to pay their bills in savings – and even fewer have a retirement savings of $1,000 or more. Furthermore, according to the U.S. Bureau of Labor Statistics, job hopping is quickly becoming the new status quo with many in the workforce having more than 10 jobs before the age of 40. This means that, as employees move from job-to-job, their pensions are affected and their ability to actively save for retirement during their early years in the workforce is affected.
So what does this mean for your retirement planning if you are finding yourself near retirement age or if you are a millennial who has not yet created a plan of action for your retirement?
Our team at BlueRock Wealth Management is equipped to discuss your needs, help you set a positive plan in motion, and help you meet your retirement or semi-retirement goals. Contact us today for a consultation and get started on your retirement planning objectives that give you confidence your future is secure.