Don’t count on luck to retire

We’ve all seen the commercials: the couple unplugging the alarm clock, driving in a snazzy convertible, and basking on a beach.
“Imagine the freedom” is firmly entrenched in the psyche of Canadians as the road to a retirement of carefree days, travel, and luxury. Where all that separates you and everything wonderful life possibly could offer is a measly little lottery ticket—oh, and a whole lot of luck.
Sure, the odds are astronomical but, hey, somebody has to win, right?
Okay, okay, it’s fun to dream about hitting the jackpot. The trouble is too many Canadians seem to be counting on that instead of saving money now for a comfortable retirement down the road. Just this week, a report from RBC Economics said contributions to RRSPs continue to decline—a trend that’s expected to continue until at least 2020.
One can’t be too harsh on Canadians. Many are living paycheque to paycheque, with little money left over to put away for the proverbial “rainy day.” And that’s if they’re lucky enough to even have a regular paycheque at all these days.
It’s also understandable that people may be leery of saving for retirement after watching their nest eggs lose one-quarter, one-third, or more of their value thanks to the financial market collapse that spawned last year’s global recession.
In Canada, our social safety net thankfully provides monthly income for retirees. And now the Ontario NDP is looking to boost that—unveiling a province-wide pension plan on Monday that would give Ontarians the opportunity to retire with “dignity, security, and without worry” no matter where they work.
The proposal would enable employees to take their pension with them when they change jobs, protect against stock market volatility, and be available to any working Ontarian without a workplace pension.
Basically, it would provide yet another option for those who want to save for retirement.
That’s the key. With people living longer, and fewer coming up to help fund our current safety net, it’s clear Canadians cannot simply rely on government to provide for our “golden years.”
Rather, it is our responsibility to ensure our own future well-being—and that involves more than buying lottery tickets.