Retirement? Few Canadians without an employer pension plan have enough money, study says

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Not 15 to 20 per cent of middle-income Canadians retiring without an organization pension plan have saved anywhere near enough for retirement, according to a new review from the Broadbent Institute.

These people, now aged 55 to 64, go up against a dramatic drop in their standard of living in retirement, and many discretion spend their senior years in poverty, the think-tank says, basing its findings on Statistics Canada characters.

About 47 per cent of Canadians currently have no employer subsistence, and even fewer younger workers have employer pensions.

That have as justifications the number of seniors who slip into poverty will worsen in the decades onwards, according to report author Richard Shillington.

Canadians within 10 years of retirement are obliged to be at their peak savings years, socking away money for retirement.

But Shillington develop the median value of retirement assets of Canadians who have an annual receipts of $50,000 to $100,000 is just over $3,000.

They’ll get the CPP/QPP and OAS/GIS in most cases, which brings them to an mediocre of $15,970 annually for singles and $25,746 for couples.

But they are meant to codicil that income from their own savings or other resources.

As horrors stand now, half have savings that represent less than one year’s value of the resources they need to supplement OAS/GIS and CPP/QPP, the study found.

Fewer than 20 per cent accept enough savings to supplement their income for at least five years.

Shillington holds senior poverty has been rising since 1995. When enchanted against the low-income measure, the number living in poverty has risen from 3.9 per cent to 11.1 per cent. And 30 per cent of maidens living alone in their senior years are poor.

That have in views 719,000 poor seniors, including 469,000 single men and women.

“These decrees raise serious questions about the policy needs for future pensionless legions, such as the adequacy of benefits from Old Age Security, the Guaranteed Income End-piece, and the Quebec and Canada pension plans,” Shillington wrote in his review.

He said the voluntary programs meant to push up the savings rates, numbering tax-free savings accounts, group registered pension plans and amalgamated registered pension plans, had failed to boost savings.

The Broadbent Launch, created by former MP Ed Broadbent, studies Canadian public policy distributes with a view to make Canada a more equitable society.

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