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A new survey released by Sun Life Financial says retirees are living on 62 per cent
of what they previously earned.
Despite this prolonged duration of slow economic development in Canada, the Sun Life Financial Retirement Now Report discovered that most seniors (88 per cent) described retirement positively and 32 per cent were surprised at the way they could manage on a reduced budget.
It is definitely thought that retirees needed 70 per cent of their previous income to keep their quality lifestyle.
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“Life in retirement is much more sustainable than you may think,” said Kevin Dougherty, President of Sun Life Financial Canada. “Despite current economic conditions, Canadian retirees do very well living on approximately 60 per cent of the income they had once they were working. Which average doesn’t change much when comparing men with women or taking marital status into account.”
Overall, employed Canadians spend around 25 % more. A worker’s monthly expenses come to $3,431, compared to the $2,611 budget of the retiree.
In a provincial breakdown, Ontario and Alberta had the most significant cuts in spending after retirement, budgets dropped over $1,000. The greying communities of Atlantic Canada retain many of their income.
The study claims that spending money on financial advice is an investment. Sixty-two per cent of those that had advisers claimed these were prepared to retire versus 38 percent of those that didn’t.
The retirees were also asked what the best advice they could give working Canadians. Early saving, financial sustainability and preventative health care were typically the most popular answers.
