There are load of stories and articles concerning early retirement, Is it possible and if so, how is it possible? Statistics Canada shows that early retirement isn’t happening quite yet. According to their statistics, more than 300,000 Canadians 65 or older worked in 2001. From these numbers 57 per cent were 65-69 years old; 26 per cent were 70-74 years old; and 17 per cent were 75 or older. The question then becomes why-is it for financial reasons or otherwise?
The explanation for lack of early retirement according to a CBC report has mostly to do with money although some people are choosing to remain in the work force simply by choice. As our population continues to live to an older age while getting healthier, it is probable that we will begin to see a number of people who choose to work well into their golden years.
On a financial level, Canadians may be finding it harder to save money these days. According to CBC, only a third of Canadians which hope to retire by 2030 are saving enough money to do so. And the worst part is that most of these hopeful retirees are not aware that they will not have enough money to fund their early retirement. According to Statistics Canada the average RRSP and RPP savings of a woman in 2004 (ages 25-64) was $5,400. For men it was slightly higher at $7,293. Statistics also show that about 60% of Canadians are not on a pension plan. Even if they are it will provide no more than 25% of the average Canadian wage which is around $45,000. If you are a homeowner you can breathe a small sigh of relief. Home equity is one of the most effective ways to ensure you have enough funds to retire when the time comes as long as your home is paid off once you leave the work field.
Whether Canadians are postponing retirement because of financial necessity or just simply because they choose to remain in the work force, it is good news for the economy. In recent years there have been too many jobs open with not enough workers to fill the gap. Not only will mature and seasoned workers be there to work, but they can teach the young up and comers the ins and outs of their chosen industry.
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