Canadian Retirement Survey (the numbers may shock you!)

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Intro (0:00)
Financial Vulnerability (1:06)
Top Financial Concerns (2:39)
Challenges for Pre-Retirees (3:23)
Household Income (4:48)
Investment Portfolio Sizes (5:40)
Non-Mortgage Debt (7:50)
Retirement Plans vs Reality (8:09)
Standard of Living (9:31)
Retirement Savings Strategies (10:20)
Amount of Annual Savings (12:08)
On Track? (12:29)
Ages of Retirement (13:10)
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DISCLAIMER: All videos on this channel (including this one) are for educational or entertainment purposes only. They are not (and are not intended to be) financial, investment or legal advice. It is our firm position that everyone has a unique situation and should seek professional advice on how best to navigate it. Rhys Martell is a Chartered Investment Manager (CIM), a Fellow of the Canadian Securities Industry (FCSI), a Qualified Associate Financial Planner (QAFP) and more. However, he is not registered to provide investment advice and, therefore, does not provide specific investment recommendations. Those looking for specific investment advice should seek out a registered professional.

[monah]

Addressing some of the smug comments here about how people must only retire if debt free, as if some kind of moral failing to do otherwise. I come from a very hardworking immigrant family, raised to live modestly and save. But now that I have a sibling with terminal cancer at 58, a mother who died in her early 80s, an aunt with terrible dementia at 83 and my own health issues, I have no desire to work until 65. My outstanding mortgage and HELOC are less than the price of an obnoxious SUV, but I am done with my 60-hour a week, high stress, very sedentary job. I want to hike, kayak, volunteer and just live. I tested living on a shoestring this past year, so i know it's doable. I don't think I am making the wrong choice.

[North-of-the-th]

Becoming fiscally aware(and responsible) should be taught in high schools. Thanks for the video, Rhys. 😊

[Bobbygma]

Well done. Thank you. My wife just retired at 57. I’m 60 and I’m energized by the people I work with and clients I get to work with. As we’ve discussed the moment that passion goes then I will retire

[Andy_Thomas]

One reason for the difference between expected and actual retirement ages is that in many cases, retirement is something that people find happens to them unexpectedly. One reason is ill health (self or dependent). Also, I have heard about people (especially post Covid) who were close to retirement age and who were made redundant and could not find equivalent work.

[billhawke]

Another point that doesn’t get mentioned is when people have kids. My parents had kids in their early 20s and were empty nesters by mid their 40s. They had 15 years to pay off debt and save and retired before 60.
I’m 52 and was 40 when our 2nd son was born. I don’t regret my choices, but it does change things. Lots of my friends are in a similar situation, which means retiring in our 50s is unlikely.
Great video. Keep them coming.

[johnwillock]

The 8th wonder of the world. The power of compound interest. Start early!!

[BillBraun-gf]

We live in southwestern Ontario. Both in our early 70's. Our combined income is almost 30.000.
We own our house and we put all of our savings into this house. It is all ready to go for re-sale if
we had to. We have 50.000 invested in safe stocks. Thats it. We have a very good quality of life.
A lot of people are stubborn and think they can have it all until the end. We chose to down size
and it paid off in spades. We don't owe a dime.
🙂🙃🙂🙃🙂🙃🙂🙃🙂

[TrevPagesPlace]

Hi Rhys! Glad I found your channel. I can tell you first hand that if someone had told me I was going to retire at 52, that was 3 years ago, I'd though they were nuts but with a solid financial plan from our financial advisor and some careful maneuvering on our part (selling our home in Ontario and moving/building in a cheaper province) we've been able to set ourselves up well. Since I never had a pension my plan was to use our house as the retirement fund (downsize) and that worked but some of it was just luck due to the insane cost of housing in Ontario.
I can also empathize with you saying "spend your money". That's a hard thing to get to grips with when you're conditioned to save save save. I'm frugal by nature so I tend to squirrel away my dividends that come in every month instead of spending it over the necessities that are required. My wife is going to retire this summer and she's worried but I have to remind her that our new house is 100% paid for, we have 0 debt and over a million in investments. The advisor tells us we have to spend the money so we'll see how that works out ;)

[marisapavan]

I’m 59.7 years old and I can’t wait to retire. Watching this video helped me understand that I am in good shape. Thank you !

[stanleber]

My assumption is that there is a strong correlation between people feeling they need to work longer: and the decline in employer sponsored pension plans, the current interest rate environment increasing fear and uncertainty and the general decline in the better paying jobs such as manufacturing. BTW - great video. Really appreciate your research summary and analysis.

[russwigle]

I enjoyed that. Thanks. I think all the inflation and higher interest rates have waken up the pre-retirees to the new cost of a good retirement.

[bl]

The set it and forget it mantra really does work well. I’ve been doing that since my twenties. Makes me more confident about our retirement going forward at 56.

[glenlynch]

Single, started my pension contrutions at 25. Lived modestly, paid off my condo at 57 and the same year I retired in 2018.
Sold my condo in the high priced Toronto market in 2021, and reinvested. Sold condo when I got a steal of a deal, in rent, still living in today. Maxed out my TFSA with condo sale, reinvesting interest in TFSA account, and maximizing my TFSA yearly top-up contributions.
Will melt down my (non-registered) RSP (35K yearly) from 65 to 70. As I lose Bridge benefit at 65. Will of course continue to contribute yearly max to TFSA
Delaying my CPP & OAS till 70.
I so enjoy living modestly. Frugal? Can afford to live like a modest king LoL.
The money I save(d) giving up the high cost of "Low living." The real fun I then experienced in life. Quitting drinking at 32 years old *30 years ago. And quit smoking shortly after!!!
To think affording to *live modestly... I want to live in a self-contained "Van down by the River, " with a Nationwide gym membership. Following the North American moderate Sun. 4 - 5 months each year in RV haven, sunny Arizona!!!

[andylowell]

I will retire in the next 2 to 3 years, but will work 1 to 2 days a week in my profession and my husband as well as a buffer for delaying cpp. We are both fortunate to have small pensions which many don't and we feel so lucky to have.

[rdefacendis]

Most people do not choose their retirement age. Retirement is foisted on them for two primary reasons; 1/ A health event that prevents someone from continuing to work and 2/ Laid off or let go from work. You reach a certain age where an event like this can not be recovered from easily. So it makes perfect sense that pre-retirees have a retirement age goal higher than what actually transpires. The best way to suss this out was with one further question of retirees: Was your retirement date planned or was it forced upon you.

The implications here are significant. For those who were planning to supercharge their savings and pay down debt in the last five years of their planned working life - may find themselves retired earlier having not saved what they had hoped for.

I was shocked at how little investments pre-retirees have available to them. There also should have been more gradations on the top end.. 9% is a big bunch of people with over a million... But, how many of those had more than $2 million or $5 million...???

[Pkeats]

Well, my husband has internalized that 65 is the age of retirement. I think we can sell our home/cottage (possible equity if $500, 000.00), and move somewhere cheaper. We can invest some of that equity into a TFSA (GIC). We have full room. He can literally build a home himself (I can be an assistant😊), and we are planning a 1000 square foot house outside of a city.
In addition to that, we should have about $500, 000.00 in RRSP/“LIRA” RRSP, so I think he can retire at 60, possibly less that that, but he won’t believe it’s possible. That’s only 6 years away. 🤞
Ps…we are trying to get fit, physically and financially, so we can make these goals come true. We have a couple of snowmobiles to be paid off and we need to do major renovations in our home that will only be funded through working!! We have a ways to go…but, I’m crossing my fingers it makes sense. Luck must come into play!

[whaler]

Great information again Reese. I think the difference between the average retirement age and the pre-retirement groups expectations of when they'll retire is due to the fact that pensions are becoming harder to come by and that saving for retirement is getting harder to do (high housing costs might be a big factor). I think the average retirement age of 59 will be going up in the next decade.

[johnnyboyvan]

I retired at 57 because of a DB pension and a small inheritance. I think many of us still had company or institutional pensions. 😊

[annashulman]

Many canadians are immigrants like myself. Their income is lower, and they have less if any retirement investments, along with fewer years of contributions to CPP. I'm not sure if survey addressed that.

[kathymooney]

pre retirees are not waiting for retirement to do big holidays/travel. they have more balance in their lives vs those of us raised by parents who lived thru the 30's and had the save, save, save mantra drilled into us. Spending a chunk on "enjoyment" versus necessary item comes hard. The thought of the Taxman getting any dollar more than I can help is motivating me to make changes.