Are you planning for the ‘pension years’?
As an educator, you are among a fortunate group of Canadians to have a pension plan in place.
We say ‘fortunate’ because a study released by the Canadian Payroll Association (CPA) discovered that 75% of working Canadians have managed to put aside less than 25% of the money they expect to need in retirement.
And it’s not looking any better for people 50 and over.
According to the same study, less than half of Canadians 50 and over have reached the 25% retirement savings threshold. Naturally, that lack of savings means people are expecting to work longer. In fact, the CPA survey found that 35% of respondents expect to work at least four years longer than they originally anticipated.
That’s where ‘thinking’ about retirement and actually ‘being’ in retirement can bring about their own set of financial realities.
As an education member, do you think you’re financially on target to retire once you reach your 85 or 90 Factor? When’s the last time you’ve stopped to figure out whether your targeted retirement date realistically lines up with where you’ll actually be financially? We’re not asking these questions to rain on your sun-filled dreams for retirement—just the opposite. We want to remind you that (even with a great pension plan in place) it’s important to ensure you’re on the right track towards financial peace of mind in retirement.
Will your pension be enough? Will you need a little bit more? What else do you need to know in order to financially prepare for life ‘after school’?
The Canadian Payroll Association study consisted of a countrywide online survey of 3,065 employees from a variety of industry sectors was conducted between June 29, 2015 and August 7, 2015 by market research and strategic planning firm Framework Partners. The polling industry’s professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population. The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering of tax, legal, accounting or professional advice. Please ensure to consult your accountant and/or legal advisor for specific advice related to your circumstances. Educators Financial Group will not be held responsible or liable for any losses, costs, damages or expenses incurred by reason of reliance as a result of the aforementioned information. The information presented was obtained from sources that are believed to be reliable. However, Educators Financial Group cannot guarantee their completeness or accuracy.