Canadians across three generations are expecting to retire before 65, according to a new report by TD Bank.
Sixty-one is the average age of expected retirement for Canadians, and the average is lower for those in generation X (ages 31 to 46) who plan to retire at age 60, and those in generation Y (ages 25 to 30) who plan to retire at age 59, found the Age of Retirement Report.
While retiring at 61 may be the expectation, people may not be taking into account the amount of savings and investments they'll need to last through their retirement years, said TD. In fact, more than one-half (53 per cent) of boomers (ages 47 to 64) and 62 per cent of those in generation X say they have less than $100,000 in household financial assets, not including company pensions, life insurance policies and home equity.
Another major consideration for Canadians when it comes to retirement is debt — something that almost one-half (44 per cent) expect to have when they retire, including one in 10 (13 per cent) who believe they will retire with a significant amount of debt. Most of the debt Canadians expect to carry into retirement is consumer debt (57 per cent) followed by mortgage debt (48 per cent).
Not surprisingly, most Canadians anticipate retirement will either be a time to relax and really enjoy life, or to try something new, with only 15 per cent saying they plan to work for the rest of their healthy lives. For almost one-half (47 per cent) of Canadians, retirement is a time where they can gradually slow down and enjoy life by spending more time with friends and family, while 38 per cent say retirement is a time to explore passions and experience new things they weren't able to while working.
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