7 simple differences between RRSPs and TFSAs + MORE Mar 18th
Can a non-resident open an investment account in Canada? Sep 21st
Should you collect CPP and OAS while working in your 60s? Dec 7th
Suze Orman on why you should work until you’re 70, be careful giving money to your kids and sell your home sooner rather than later Mar 9th
Is the 4% Rule obsolete? + MORE Aug 3rd
5 key risks to retirement income
– moneysense.ca
Inflation is the single biggest risk for retirees, with 58% of pre-retirees and 45% of retirees worried about the potential for rising prices to erode purchasing power, finds a Fidelity Investment survey.“Inflation hurts retirees more than any other group,” says Peter Drake, vice-president, retirement and economic research, Fidelity Investments Canada. “In retirement, you have to plan for inflation because it can do a lot of damage over the long term.”
The stress-free guide to retiring rich »
Additional risks include:
healthcare (53% of pre-retirees are concerned vs. 42% of retirees);
asset allocation (46% of pre-retirees vs. 31% of retirees);
running out of money (46% vs. 30%); and
longevity (49% vs. 33%).
The survey also found that 62% of pre-retirees expect to continue working in retirement, and 54% of those that work do so for financial reasons. Meanwhile, 27% of retirees are currently working at least part-time.
The true cost of retirement »
Still, 85% of retirees have a positive outlook on retirement…
Canadian retirees spending an average $2,400 a month
– moneysense.ca
(Getty Images / shapecharge)Housing is the single greatest monthly expense Canadian retirees are facing, according to a new study.
On average, retired Canadians are spending $2,400 a month, or $28,800 a year as revealed by the BMO Wealth Management Study, with $668 of that going towards accommodation.
Next on the list is $581 for living expenses like bills, clothing and transportation. Travel expenditures add up to an average of $282 a month, while medical expenses cost retirees an average of $151 a month.
Average monthly expenses varied across the country. Atlantic Canadians are spending the least per month, at $1,975, while Albertans are forking over the most at $2,648.
Is your advisor retirement ready? »
Canadian retirees aren’t just spending their money on practical expenses, however.
More than half of those surveyed, or 55%, admitted to having splurged around $10,000 or more in retirement. Around 41% said they’re blowing their funds on new vehicles, 22% said they’re doing major renovations on their homes and 11% admitted to giving large amounts of money to family members…
