VANCOUVER (NEWS 1130) – Many baby boomers share one big concern as they approach retirement: they’re worried they haven’t saved enough money.
The big difference, according to the latest RBC Retirement Myths & Realities poll, is how much they are planning to save.
In B.C., not-yet-retired boomers are hoping to save close to $1-million, but the figure differs across the country.
“For Canadians that already have over $100,000 in assets, they think they need to have saved about $950,000, or almost $1-million. And they’ve currently saved around $675,000,” Rick Lowes with RBC explains.
He says the poll finds expectations are a bit lower for people who haven’t saved quite that much.
Compared to the national average, the gap that people in B.C. have when it comes to what they have saved versus how much they think they’ll need to save is apparently slightly lower, he says.
“But I think B.C., overall, is doing a decent job in terms of making sure they have saved enough for their retirement and being closer to that expectation,” Lowes adds.
Not-yet-retired boomers are considering a number of options to help their situation, including downsizing, working in retirement and borrowing against home equity.
“I certainly think that’s definitely correlated with the fact that housing prices and the equity they may have built up in their home is a very tangible thing that they can leverage,” he adds.
Three per cent hope to win the lottery to fund their golden years. However, for those who are looking to save in a more realistic manner, making a plan is key.
“It’s never too late to start making sure you have a good financial plan in place,” Lowes says. “Those who are going to continue to work — you definitely want to look at how we can make those years that you continue to work as productive as possible.”
The good news is almost 80 per cent of the 50-plus set across Canada have a financial plan in place for retirement, the poll suggests.
-With files from Monika Gul