Retiring alone challenge for single boomers
More Canadians are retiring
alone and should take action to meet unforeseen challenges, according
to a new report from the BMO Retirement Institute. BMO finds a significant
gap between the perception and reality of becoming unexpectedly single
and its effect on personal finances.
The survey found 54% of married Canadians 40 or older feel becoming suddenly single may have a negative impact on their
finances, and more than 70% who did suddenly become single admitting feeling the pinch.
According to BMO director retirement strategies Tina Di Vito — see also the TFSA videos we did in the past week -
Whether by divorce, death, or never marrying in the first place, "the
odds of being single at some point during retirement are high. Regardless of how or why one finds themselves unmarried in retirement,
one thing is certain: it presents a unique set of financial, emotional,
and planning challenges.”
Retirement for One
The BMO report,
Retirement for One – By Chance or By Design, identifies several distinct challenges for men and women over 40 who retire alone. They include lack of knowledge about retirement programs, the need to devote more income to living expenses and therefore less for savings, less room to maximize the Canada Pension Plan and difficulty in housing alternatives.
Singles can improve their odds by:
• Planning for retirement as early as possible
• Building and sustaining wealth
• Understanding income and expenses
• Considering changes in housing needs
• Focususing on social and emotional well-being
• Devising a comprehensive health strategy
Few of the 1,325 surveyed said they were prepared for being suddenly
single: Only 38% had a financial contingency
plan in case they outlived their spouse/partner. 13% of married couples feel the high cost of divorce is reason
enough to stay married. 24% felt finances played a role in their separation.
The Leger Marketing online poll was conducted in December.
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Source The Wealthy Boomer : Retirement
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