Maxed out your TFSA and RRSP? Here’s where to put cash Jan 24th
“Why do I need a financial plan?” + MORE Jan 12th
Scammers want your retirement—here’s how to protect yourself + MORE Mar 21st
Université de Moncton: The new seniors on campus + MORE Feb 10th
Retirement Income for Life: Why Canadian retirees love Frederick Vettese’s books and his PERC + MORE Feb 22nd
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…
