A new survey released by Sun Life Financial says retirees are living on 62 per cent
of what they previously earned.
Despite this prolonged period of slow economic development in Canada, the sun’s rays Life Financial Retirement Now Report found that most seniors (88 percent) described retirement positively and 32 percent were surprised at the way they could manage on a reduced budget.
It has long been believed that retirees needed 70 per cent of the previous income to maintain their standard of living.
Related
- Canadians without company pension plan face uphill battle to stay out of poverty, study findsRetirement is decades away for millennials – and that’s why this is the time to begin saving
-
-
-
“Life in retirement is much more sustainable than you may think,” said Kevin Dougherty, President of Sun Life Financial Canada. “Despite current economic conditions, Canadian retirees are doing very well living on just over 60 percent of the income they had once they were working. Which average doesn’t change much when you compare men with women or taking marital status into consideration.”
Overall, employed Canadians spend around 25 % more. A worker’s monthly expenses come to $3,431, compared to the $2,611 budget of a retiree.
In a provincial breakdown, Ontario and Alberta had the most significant cuts in spending after retirement, budgets dropped over $1,000. The greying communities of Atlantic Canada retain many of their income.
The study claims that spending money on financial advice is an investment. Sixty-two per cent of those that had advisers claimed they were prepared to retire versus 38 percent of those who didn’t.
The retirees were also asked what the most sage advice they might give working Canadians. Early saving, financial sustainability and preventative health care were the most popular answers.
