Toronto ON – The newly released Census 2011 data by Statistics Canada confirms:
- Canadians are living longer;
- There are more than 5,000 centenarians in Canada, up 25.7 per cent since 2006;
- The number of Canadians 65 and over grew by 14.1 per cent when compared to 2006, and
- Canadians aged 55 to 64, typically the group where people leave the labour force, are still working.
Why are Canadians continuing to work beyond the typical age of retirement?
According to the Canadian Association of Accredited Mortgage Professionals (CAAMP), Canadians “are taking prudent steps to manage their mortgage debt levels, making lump sum payments, paying off their mortgages early and securing lower interest rates.” For those people choosing to remain in the workforce longer, it may be to finance these accelerated payments so they can pay off their mortgages sooner.
“The additional mortgage repayments should be linked to retiring debt-free and increasing savings in order to live a financially healthy longer life,” says Jeffrey Schwartz, executive director of Consolidated Credit Counseling Services of Canada, Inc. “If working for a few more years means people will have enough money to fund their retirement, that’s a good thing for everyone.”
Canadians can reduce the financial stress of retirement if they plan ahead by:
- Setting a goal by visualizing what they want their retirement to look like – for example, do they want to travel or own a second home?
- Consulting with a trusted advisor or trained credit counsellor to review their current financial situation
- Forecasting how much it will cost to comfortably live until age 100
- Changing behaviours and attitudes toward spending and reducing expenses, such as downsizing when the children no longer live at home or becoming a one-car household to save maintenance and gas costs
- Reducing their debt(s) prior to retirement
- Increasing savings in order to realize their financial goal
For more information on how to prepare for a financially healthy retirement Consolidated Credit offers free online tools to help you plan and save for your future.