Half of older Canadians have delayed retirement because of mounting inflation
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Mom and Dad Interrupted: Survey by Bromwich+Smith and Advisorsavvy
TORONTO, June 16, 2022 – A new survey commissioned by Bromwich+Smith and Advisorsavvy finds half of older Canadians (54%) have delayed retirement because of mounting inflation and cost of living this year alone. Mom and Dad Interrupted, the first of a two-part series conducted by Angus Reid (1,515 Canadians) puts a 2022 lens on the financial challenges of the 55+ cohort as they get set to launch into the third act of life.
Four-in-10 older Canadians have delayed (or plan to delay) their retirement because they have too much debt, while 62 per cent have delayed retirement because they don’t have enough savings or investments.
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Mom and Dad interrupted: Reasons for delayed retirement |
Canadians 55+ |
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I have delayed (or plan to delay) my retirement because I don’t have enough savings/investments |
62%
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I have delayed (or plan to delay) my retirement because of rising inflation/cost of living this year |
54% |
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I have delayed (or plan to delay) my retirement because I have too much debt |
40% |
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I have delayed (or plan to delay) my retirement because my children still require financial support |
26% |
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I have delayed (or plan to delay) my retirement because I love my job too much to quit |
23% |
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I have delayed (or plan to delay) my retirement because of the COVID-19 pandemic |
21% |
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I have delayed (or plan to delay) my retirement because I am taking care of my partner/spouse |
13% |
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I have delayed (or plan to delay) my retirement because I am taking care of a parent or other family member |
10% |
“The results of the survey are somewhat dispiriting,” said Solomon Amos, founder of Advisorsavvy. “There have been economic shocks throughout time, but the last couple years have tested many people, and put the importance of proper retirement planning into plain view.”
Back to the survey, older Canadians were also asked about their retirement expectations and fears of possible scenarios including never being able to retire (63% were worried about this), running out of money after they retire (something feared by 71%), or having to go back to work to afford the cost-of-living increases (24%).
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The affordability of getting old: Money and retirement |
Canadians 55+ |
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I am worried about running out of money after I retire |
71% |
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I worry I will never have enough money to retire |
63% |
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I expect to retire within 5 years |
54% |
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49% |
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I will have to sell my house in order to retire |
25% |
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I am worried I will have to go back to work to afford the cost of living |
24% |
“Canadians are all feeling a bit exhausted from the last two years, between multiple waves of COVID-19 and a tattered economy,” said Laurie Campbell, Director, Client Financial Wellness at Bromwich+Smith. “For those close to retirement, 2022 might seem like the best year to do so. But with inflation still high and bank accounts and retirement savings being depleted, it might be wise to ask yourself, can I retire in 2022?”
Additional Resources:
Retirement: Wasn't there supposed to be cake?
How Much Money Do I Need To Retire In Canada?
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About the Mom and Dad Interrupted Survey
From June 9 to June 12, 2022, an online survey was conducted among a representative sample of 1,519 Canadians who are members of the Angus Reid Forum. For comparison purposes, the sample plan would carry a margin of error of +/- 2.5 percentage points, 19 times out of 20. Discrepancies in or between totals are due to rounding.
About Advisorsavvy
Advisorsavvy is a free service that helps consumers find, compare and rate local investment, financial and insurance professionals in good standing through a knowledge base of online feedback and reviews.
Advisorsavvy helps Canadian consumers confidently connect with great financial advisors and offers free tools and calculators to help answer people’s retirement planning questions.
About Bromwich+Smith
At Bromwich+Smith, our dedicated team of Licensed Insolvency Trustees and Debt Relief Specialists are committed to rebuilding our clients’ worth, while helping relieve the overwhelming financial and emotional burden they are experiencing. Beyond our clients’ financial wellbeing, Bromwich+Smith strives to restore the personal wellbeing and self-confidence of every client. Whether it’s through a consumer proposal, bankruptcy, counselling or budgeting, our clients trust us to work with them to find customized solutions to make them whole again. With offices in BC, Alberta, Saskatchewan, Manitoba and Ontario, Bromwich+Smith helps thousands of Canadians rebuild their worth every year.
Bromwich+Smith's Debt Relief Specialists are available for a free, confidential, no-obligation initial consultation by phone at 1-855-884-9243 or via www.bromwichandsmith.com.