Do you believe that the outlooks on retirement for future generations will be significantly different than for that of current retirees? If your answer is “yes”, you’re not alone. Most clients that I talk to anticipate significant differences. Thoughts, expectations, confidence and planning will differ as well with age and gender.
83% of retirees believe future generations’ retirement experience will look significantly different from theirs. 70% of non-retirees agree with this, and most believe these changes will be negative. Generation X women (those ages 36-51) are especially pessimistic about their retirement expectations. A large percentage of these women have low confidence levels about achieving their retirement lifestyle. Surely there must be an opportunity to improve their attitudes, behaviours and prospects. In fact, most believe they could benefit from retirement planning advice and activities that could boost their confidence by helping them make good financial decisions and encourage the habit of saving for retirement.
The generation known as the Baby Boomers covers a broad period in time – almost 20 years. And some of the oldest boomers have boomer children, so it’s a small wonder that all Boomers are not alike. Can parents and children share all the same traits and values? They don’t when it comes to their confidence levels in being able to live their desired retirement lifestyle. What could be weighing down confidence levels?
Certainly there is the anticipation of less generous company sponsored pension plans as well as potential cuts and eligibility to government retirement benefits. Add to this the expectation that working age Canadians will work longer and will need to become more self-sufficient when it comes to saving money for retirement. Again, the common worry is whether they can save enough to support the lifestyle they want.
Saving for retirement is a top financial priority for six in ten Canadians. Working Canadians do have dreams and expectations about retirement and protecting their values. What do Canadians value most in life? Over half say family and financial security are two things they value most.
Surveyed Canadians do say that differences relating to retirement are not all bad. Of course, younger generations have the potential to improve their future retirement experiences the most. There is a greater awareness of the importance of planning and starting earlier in life, and fortunately, younger generations do have more time to plan. They also have access to a growing arsenal of improved planning tools, bolstered by quickly evolving technology. That technology may also serve to improve their quality of life in retirement or whatever they choose to call this phase of their lives.
The best results generally come from working with accredited professionals, particularly those that must follow an enforced code of ethics, and compliance with evolving rules of conduct. Engage with advisors who will provide you with holistic planning aimed at meeting your needs, today, tomorrow and throughout the years to come. It is never too early to start. Sit down with a trusted advisor and get started on your plan.
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