Retirement planning, while absolutely essential, can be a complicated thing. Gone are the days when all we had to do was put nickels in the piggy bank to save money for the next great toy you couldn’t wait to get your hands on. Unfortunately, it seems that many Canadians’ retirement plans may not be adding up to the numbers they hoped.
According to a recent survey from HSBC, more than half of Canadians either plan to ease into retirement by working reduced hours or have no plans to ever quit. Approximately 15 per cent of those surveyed do not think they will ever be able to fully retire, while 45 per cent of Canadians expect they will be semi-retired before fully retiring.
So what’s the deal? Are we just bad at saving?
Perhaps some people do need help or have limited financial knowledge, but much of it is a result of Canadians balance saving for retirement while dealing with record debt levels. Last month, Statistics Canada reported that the ratio of household debt to disposable income hit a new high in the fourth quarter of last year.
So how can we tackle this right now? Contact a financial advisor if you’re struggling and check out this retirement budget worksheet from Get Smart About Money!
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