Goan Voice, Canada : Health & Wellness

Retirement
by Peter Hadzipetros, CBC News Online | Research: Laura Carlin | Feb. 11, 2005
http://www.cbc.ca/news/background/retirement/
If you're like most Canadians, you want to retire early and you're confident you'll have the means to do it. But chances are you won't be packing it in as early as you planned to – and you won't be living in the lap of luxury.

You won't be stocking up when tins of cat food go on sale, either.

Canada is on the cusp of a retirement revolution. It's those baby boomers playing their demographic games once again.

Over the next five to 10 years, more Canadians than ever will be in a position to clean out their desks for the last time.

In 1981, there were 4.6 million near-retirees (people between 45 and 64 years old) in Canada. They made up 27.8 per cent of the working-age population. By 2002, that number had grown to 7.6 million – or 35.7 per cent of the working-age population. By 2006, 8.7 million – or 38.8 per cent of the working-age population – will be close enough to the golden handshake to give it serious thought.

According to the number crunchers at Statistics Canada, a third of them will conclude they haven't set aside enough to be able to afford to do it.

Workers per retired person

1991: 3.8
2001: 2.7
2011: 1.8 (projected)

That same study (the General Social Survey of 2002) asked people who had been retired for a year, how they were faring financially now that they were collecting a pension. Just over a third – 34.1 per cent – said they were worse off. The rest said their situation was about the same – or they were better off.

Here are a few more numbers to ponder:

The median retirement age fell from 65.1 years in 1976 to 60.6 in 1997. By 2003, it was up again – to 61.8 years.
Canada/Quebec Pension Plans are designed to provide retirement income of no more than 25 per cent of the average Canadian wage ($41,100 for 2005). Throw in Old Age Security benefits, and you're up to 40 per cent.
Most retirement planners say you should have accumulated enough assets to replace 70-80 per cent of your pre-retirement income by the time you stop working.
Most Canadians retire on far less than that (and don't have 101 canned tuna recipes).