What does retirement look like today?

GAIN A BETTER UNDERSTANDING OF WHAT RETIREMENT LOOKS LIKE FOR CANADIANS WITH THESE KEY STATS.

Your retirement will look a lot different than your parents’ retirement. In fact, your retirement will probably look different than everyone else’s because your lifestyle and goals are unique to you.

There are, however, some major retirement trends unfolding. And getting a better understanding of these changes will help you plan for your retirement.

1. We are not on track

46% of Canadians over 55 say they’re falling short in their saving for retirement and 1-in-6 haven’t started.1

2. We are retiring early

The majority of us are not working through retirement. Actually, we are retiring early. The average retirement age in Canada is 63.2

3. We are living longer

It’s quite extraordinary: every year that goes by, Canadians live longer. At age 65, the average lifespan of men and women is now 84 and 87, respectively.

4. Health care is a major concern

2/3 of Canadians say the biggest concern they have as they get older is their health – yet less than 1/4 have planned or saved for health-care costs in retirement.4 And 1-in-15 Canadians over the age of 70 are also providing some form of care for seniors with long-term health issues.

5. People are retiring with mortgages

In a significant change from what was the historical norm, about half of Canadians are carrying a mortgage into retirement.

6. “Encore” jobs are on the rise

With longer retirements come the desire to find fulfilling activities. While many retirees use their retirement to travel and spend time with their friends and families, others return full- or part-time to the workforce – and not out of necessity. Encore jobs will be a distinct possibility for many Canadians who are not yet retired.

While retiring early and living longer can both be good, they underscore the need to start planning early. Contributing to your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) are two of the best ways to make sure you’re on track for retirement.