Money on the mind: More than 75 per cent nearing retirement worry about finances
More than three quarters of Canadians nearing or in early retirement are worried about finances at a time when more and more people plan to age at home for as long as possible, according to a new survey.
Bernie Larusic, a senior's advocate in Sydney, N.S. says with the cost of living is on the rise, it's hard to save money for the future.
"When you look at inflation, and when things started in 1967 for CPP, it was $50, now it's a $1,000 . So in 50 years, it hasn't gone up that much." added Larusic.
A recent survey from Ryerson University’s National Institute on Ageing says 77 per cent of Canadians aged 55 to 69 worried about retirement finances.
Larusic says he's not surprised.
"Now people understand, holy cow what am I going to do when I hit 60, 65, or 70? What am i going to live on?"
As the COVID-19 pandemic revealed some shortcomings in the long-term care system, 44 per cent of respondents are planning to age at home, but many don’t fully understand the costs involved.
"The pandemic has kind of turned the world upside down. The market has been up and down, but we tell people to stay the course and set a budget and stick to it." says Tim Burns, a financial advisor in Sydney.
The researchers also suggest leveraging home equity and purchasing private long-term care insurance as ways to help with financial stability for the later years.
Burns says it's important to stay the course. He is not surprised concerns are rising as costs soar.
"They worked hard their whole life and with the cost of living increasing, of course they're going to be concerned. Everything cost money, but with a proper plan in place they should be able to live the way they want too into retirement." says Burns.
To help with their financial future, the researchers suggest Canadians should delay receiving any Canada Pension Plan, which in return would increase their pay out in later years.
But Larusic says seniors are already pinching pennies.
"It's too much for them. They're struggling. I mean even baloney is going up. You go to a meat counter now and you just don't buy meat anymore, it's too expensive." added Larusic.