A new survey revealed while baby boomers in Canada may have unrealistic hopes about how much they can save in the few years before they retire, many are still optimistic about their personal financial situation.
Conducted by Vision Critical for the $70 billion Central 1 Credit Union, the survey showed on average, boomers who have not yet retired have $231,000 in assets and expect to retire with $707,000. Older boomers who have already retired have $344,000 in assets.
More than one half of those who have not retired said not saving enough or diminished investments were the reason they will delay retiring. Of those who have retired, 30% said it was because of job loss or downsizing, while 28% said health issues were a factor.
Half of the retired boomers said they had debts when they retired, the survey showed. Twenty-six percent had mortgages, 26% had line of credit balances, 24% had credit card balances and 8% had personal loans.
They survey also revealed that 66% said they have a very good understanding of financial products and 59% believed they can reach all their retirement goals. Seventy-seven percent said they want advice from a knowledgeable professional.
Thirty percent believe the economy will improve during the next three months, but 17% are concerned that they might lose their job because of continuing economic issues. One third of boomers in Ontario and British Columbia are retired, with an average age of 63. Ninety percent retired under the age of 65, with the average being 57.
Vision Critical interviewed 2,180 boomers in Ontario and British Columbia.