Canada's boomers expect to live longer on less

While increasing numbers of Canadians are expecting to live longer than their parents' generation, their retirement plans may not be keeping pace with that longer lifespan.

According to the 2011 RBC Retirement Myths & Realities poll, Canadians “pre-retirees”—those aged 50 plus who are not yet retired—believe they are going to live into their mid to late 80s, based on their family history and current health. While an overwhelming majority (90 per cent) of this age group are expecting to spend many of those years in a successful retirement, more than one third (36 per cent) worry that they do not have enough money to live well and do what they want during their retirement years.

“As life expectancy rates continue to rise, it becomes very important to plan for longevity and its financial implications," says Bill Hill, national retirement planning consultant at RBC Financial Planning (www.rbc.com/yourfuture). “Everyone hopes to have enough flexibility and funds to live the way they want to in retirement and not to have to depend on anyone else for financial or other assistance.”

Success in retirement will look different for each individual Canadian, no matter what their age. When circumstances change, you need to manage your finances well—leading up to and throughout your retirement. It's likely that health will be one of those changing circumstances; it's also likely that inflation will be another.

“Inflation is one of the factors in our retirement that we can't control, yet it's not always taken into account when Canadians are making their post-career plans,” adds Hill. “By working through scenarios with a financial planner—including the impact of inflation and any potential health or disability constraints on you or a family member or close friend—you can help ensure that your life in retirement truly is what you want it to be."

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