Many aging Canadians don’t have nearly enough saved up for retirement, a new study from the Broadbent Institute suggests.
Canadians without an employee pension represent 47 per cent of those aged 55-64 in the country. Only 15-20 percent within this group are middle-class with enough savings to comfortably retire in Ten years. The research says anyone outside this bracket have a difficult time accumulating their assets to avoid poverty, despite ten years in order to save.
We possess a retirement income crisis on our hands that needs urgent government action now
The study, penned by Richard Shillington, focuses on the levels of revenue supplied by Senior years Security and Guaranteed Income Supplement relative to personal savings. The finding is the fact that these benefits are not adequate to keep the retired from falling into poverty.
“The panoply of public policies offering ‘voluntary’ choices for saving – for example RRSPs, TFSAs, group RPPs, and also the newest Pool Registration Pension Plans – have demonstrated their inadequacy to deal with the shortcomings in declining workplace pensions and a Canada Pension Plan with limited benefits,” the research concludes.
The senior poverty gap stands at $2.5 billion annually. The study warns of levels getting worse if the issue of retirement savings isn’t addressed.
Related
- How Canadian snowbirds are feeling the pinch of the falling loonie: ‘There are no deals anymore’Why you should not rely on postponing retirement there are saved enoughWhy you should save less for retirement, and spend your money now (seriously)
-
-
-
“This new data on retirement funds and gaps in support makes a person thing perfectly clear – we have a retirement income crisis on our hands that requires urgent government action now,” said Rick Smith, Executive Director of the Broadbent Institute.
The value of retirement assets for those without employee pension are shockingly low. Canadians making $20,000-$50,000 have an average of $250 saved for their golden years. Half of the demographic has less than half a year’s income saved. The typical single senior falls $5,600 below the poverty line, with a median salary of under $20,000.
The study says Ottawa’s proposed 10 % GIS increase could have the minor impact of alleviating senior poverty by 12 percent. This could still leave some 634,000 retirees impoverished.
“Our new study shows now isn’t time for Ottawa and the provinces to punt on expanding CPP,” said Smith. “In fact, we need federal leadership to create this happen. Boosting the GIS by 10 per cent for single seniors is a start although not nearly enough.”
