Nevada Retirement Planners

A poll of 584 Canadians aged 50 or more finds 46% lack confidence that the pension and retirement system will provide them with a comfortable retirement.

The poll released today by TNS Canadian Facts got a "startling" response to its question on how well they thought the current system meets their needs: 67% or two thirds said "not well or not very well", 47% suggested some reform was needed and 20% called for "extensive" reform.

"Clearly, many Canadians are approaching their retirement years with considerable trepidation," said TNS Canadian Facts vice president Norman Baillie-David [pictured]. The recent stock market volatility and economic malaise has made older Canadians "very concerned … We are seeing a build-up of grass roots support for some action."

Fortunately, it appears these "recent events" have given many aging baby boomers a wakeup call. The survey finds many are changing their behaviour, with 41% saying they will boost their personal savings and investments so as to become less dependent on employer or government pensions. 

82% support more TFSA contribution room

One of the most popular suggestions for reform was for more contribution room for Tax Free Savings Accounts (TFSAs), supported by 82% of those polled. (For more on the retroactive TFSA idea, see this blog entry from last summer.)  The same percentage believe funds under the CPP should be guaranteed against bankruptcy and that pension surpluses should belong to plan members rather than their employers.  A similar 80% believe the self-employed should have the right to voluntary supplementary CPP contributions and benefits, while  76% think pensioners should get priority in the event of bankruptcy.

26% expect to live "day to day" in retirement

Looking at the survey in more depth, Question 3 was "How comfortable are you financially/do you believe you will be in your retirement?" Only 5% said they will not live comfortably but 26% said they expect to live day-to-day. But almost seven in ten expect to have adequate means (49%) and a standard of living as good or better than they enjoyed in their working years (21%).

Similarly, Question 4 on confidence in the system, revealed that 37% are "somewhat confident," 11% "very confident" and 4% "completely confident that the current three-stooled retirement system will be there for them (that is, employer pensions, government pensions and private savings chiefly through the RRSP/TFSA/non-registered savings). However, 28% were "not very confident" and another 18% "not at all confident."

More likely to use savings accounts than TFSAs

One strange finding that may not be statistically significant is that more people — 47% — said they are "likely to use" [taxable] savings accounts than Tax Free Savings Accounts [46%.]. That would suggest there is still plenty of ignorance about TFSAs, as the recent Mackenzie survey suggested. 60% cited RRSPs. In that group, 45% use mutual funds, 20% [individual] equities or stocks, 18% bonds and just 4% exchange-traded funds (ETFs).

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Source The Wealthy Boomer : Retirement

While nearly one in three (31%) workers expect never to retire, 57% feel there is no appropriate age for retirement and the decision when to retire is a personal choice, says the 20th Annual RBC RRSP Poll.

The average retirement age in Canada is 62 but baby boomers are increasingly choosing to stay working or return to the
workforce after retirement, says RBC head of Retirement Strategies Lee Anne Davies. The average life expectancy of Canadians has steadily increased since 1979, with current life expectancy at birth listed at 78 years for men and 83 years for women, according to Statistics Canada By age 65, men's life expectancy increases to 83 years and women's increases to 86 years.

The poll found 35% feel an aging population will be a financial burden: 46% of younger Canadians aged 18 to 34 feel this way.

"Boomers are the first generation to be faced with caring for aging parents as they near retirement themselves," said Davies. While 91% look forward to 'me time' in retirement,   needs of family members may make this a challenge.

The poll of 1,457 adults was conducted by Ipsos Reid late in October 2009.

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Source The Wealthy Boomer : Retirement

While nearly one in three (31%) workers expect never to retire, 57% feel there is no appropriate age for retirement and the decision when to retire is a personal choice, says the 20th Annual RBC RRSP Poll.

The average retirement age in Canada is 62 but baby boomers are increasingly choosing to stay working or return to the
workforce after retirement, says RBC head of Retirement Strategies Lee Anne Davies. The average life expectancy of Canadians has steadily increased since 1979, with current life expectancy at birth listed at 78 years for men and 83 years for women, according to Statistics Canada By age 65, men's life expectancy increases to 83 years and women's increases to 86 years.

The poll found 35% feel an aging population will be a financial burden: 46% of younger Canadians aged 18 to 34 feel this way.

"Boomers are the first generation to be faced with caring for aging parents as they near retirement themselves," said Davies. While 91% look forward to 'me time' in retirement,   needs of family members may make this a challenge.

The poll of 1,457 adults was conducted by Ipsos Reid late in October 2009.

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Source The Wealthy Boomer : Retirement

A third of Canadians have no RRSPs but even among those that do, 80% are not confident the investments in them will provide enough for Retirement, according to a BMO Financial Group survey being released today.

The survey, conducted by Leger Marketing, also finds nearly 50% of those with RRSPs do not feel they're contributing enough to meet their retirement goals.

Serge Pepin, Director of BMO Investments Inc. [pictured left] attributes this lack of confidence to the uncertain economic climate in the wake of the 2008 stock market decline. "There's still a mindset out there with Greece and other European countries that we're still in crisis," he says in an interview, "They're still making headlines so people are nervous about whether better economic numbers will happen or that things are getting any better. The mindset is very much that we're still in a very fragile environment."

 BMO Financial Group director of retirement strategies Tina Di Vito agrees "a lot has changed over the last year … It's a good time for investors to re-evaluate how much volatility they can live with." Di Vito says people need to understand what kind of investors they should be before deciding on any investment to put into an RRSP. Naturally, the earlier one contributes the better but consistency is also important.  "Spend the time to develop a retirement plan that focuses not only on the goal but also on a specific schedule to help them stay on track with savings."

One in four don't know how much they'll need to retire

The survey of 1,560 adults was conducted early in January and  found 25% do not even know how much is required to achieve a comfortable retirement. 54% estimate they'll need at least $550,000.

Di Vito [pictured right] counsels against any "one-size-fits-all number until it's determined what kind of retirement lifestyle you wish to have. Take a look at the Retirement Rocks videos conducted last week with Heather Compton and you'll see figures of twice and four times that amount may be necessary for those wishing to replace annual incomes of $50,000 and $100,000 respectively [assuming no employer and government pensions.]

That's based on a relatively simple calculation: that you can earn a 5% return through bonds or perhaps a balanced fund. So if you need $50,000 a year, a $1 million nest egg spins off $50,000 a year at 5%.

TFSA launch in RRSP season adds to confusion

But BMO's Pepin says the average guy in the street doesn't think of it that way. "I don't think that's the mindset. There's still a lot of confusion and most think the government [pensions] will suffice. At a certain age, they find out that it may not suffice; that they may live longer than they thought."

What do you say to those people? "For those who have not saved or rely on Old Age Security etc. it will be extremely difficult. We work with them as best we can." 

The launch of the Tax Free Savings Accounts in January 2009 — right after the crash and at the height of the annual RRSP season — further confused matters. "Some are confused the TFSA is the new RRSP," Pepin said, "There's still a lot of education to be done and a lot of information to absorb in a short period of time."

Automatic contributions best but few practice it

The survey shows the majority (56%) believe the key to successful RRSP investing is to contribute annually [22% said this] or monthly [34%]. But in practice, only 37% make these kind of regular RRSP contributions and 33% do not contribute at all. The latter fact Di Vito finds "troubling" in light of the declining coverage of traditional employer-sponsored pension plans. Those with neither employer pensions nor RRSPs cannot count on the Canada Pension Plan to meet all their financial needs in retirement," Di Vito warns.

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Source The Wealthy Boomer : Retirement

A third of Canadians have no RRSPs but even among those that do, 80% are not confident the investments in them will provide enough for Retirement, according to a BMO Financial Group survey being released today.

The survey, conducted by Leger Marketing, also finds nearly 50% of those with RRSPs do not feel they're contributing enough to meet their retirement goals.

Serge Pepin, Director of BMO Investments Inc. [pictured left] attributes this lack of confidence to the uncertain economic climate in the wake of the 2008 stock market decline. "There's still a mindset out there with Greece and other European countries that we're still in crisis," he says in an interview, "They're still making headlines so people are nervous about whether better economic numbers will happen or that things are getting any better. The mindset is very much that we're still in a very fragile environment."

 BMO Financial Group director of retirement strategies Tina Di Vito agrees "a lot has changed over the last year … It's a good time for investors to re-evaluate how much volatility they can live with." Di Vito says people need to understand what kind of investors they should be before deciding on any investment to put into an RRSP. Naturally, the earlier one contributes the better but consistency is also important.  "Spend the time to develop a retirement plan that focuses not only on the goal but also on a specific schedule to help them stay on track with savings."

One in four don't know how much they'll need to retire

The survey of 1,560 adults was conducted early in January and  found 25% do not even know how much is required to achieve a comfortable retirement. 54% estimate they'll need at least $550,000.

Di Vito [pictured right] counsels against any "one-size-fits-all number until it's determined what kind of retirement lifestyle you wish to have. Take a look at the Retirement Rocks videos conducted last week with Heather Compton and you'll see figures of twice and four times that amount may be necessary for those wishing to replace annual incomes of $50,000 and $100,000 respectively [assuming no employer and government pensions.]

That's based on a relatively simple calculation: that you can earn a 5% return through bonds or perhaps a balanced fund. So if you need $50,000 a year, a $1 million nest egg spins off $50,000 a year at 5%.

TFSA launch in RRSP season adds to confusion

But BMO's Pepin says the average guy in the street doesn't think of it that way. "I don't think that's the mindset. There's still a lot of confusion and most think the government [pensions] will suffice. At a certain age, they find out that it may not suffice; that they may live longer than they thought."

What do you say to those people? "For those who have not saved or rely on Old Age Security etc. it will be extremely difficult. We work with them as best we can." 

The launch of the Tax Free Savings Accounts in January 2009 — right after the crash and at the height of the annual RRSP season — further confused matters. "Some are confused the TFSA is the new RRSP," Pepin said, "There's still a lot of education to be done and a lot of information to absorb in a short period of time."

Automatic contributions best but few practice it

The survey shows the majority (56%) believe the key to successful RRSP investing is to contribute annually [22% said this] or monthly [34%]. But in practice, only 37% make these kind of regular RRSP contributions and 33% do not contribute at all. The latter fact Di Vito finds "troubling" in light of the declining coverage of traditional employer-sponsored pension plans. Those with neither employer pensions nor RRSPs cannot count on the Canada Pension Plan to meet all their financial needs in retirement," Di Vito warns.

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Source The Wealthy Boomer : Retirement

Older Canadians aged 50 or older — most of them post-war "baby boomers" — are sitting on some $300 billion in low-growth investments, according to Russell Investments Canada Ltd. Based on data compiled by Ipsos Reid, it found this group is holding about 25% in GICs (Guaranteed Investment Certificates) and High Interest Savings Accounts in their portfolios: the most in those investments in nine years. 

"Investors have had to deal with significant market volatility over the past two years, so it is expected that many Canadians have a lower risk tolerance and a higher desire for security," says Russell managing director Fred Pinto, Distribution Services [pictured] in a release issued this morning. "However, too many Canadians are earning unnecessary low returns.  GICs and savings accounts do not yield enough after-tax returns to position portfolios for retirement and deliver the income needed in retirement, particularly if you factor long-term inflation expectations."

In a brochure entitled 300 billion reasons to talk to Russell Investments,  the firm says the average 3-year GIC currently yields "barely over 2.0%" while a typical High Interest Savings Account pays less than 1.5%. After taxes, that won't even keep pace with inflation.

In an interview, Pinto says simply "It's not a good time for cash. Investors should move up the risk spectrum." 

Double-digit gains last year from taking slightly higher risk

Pinto points out that some globally-managed bond and conservative balanced funds posted double-digit gains last year. Such investments do entail taking on slightly more investment risk, but "are much more able to address longevity risk – the risk of outliving one's money in retirement."

While $300 billion may not seem that huge in this era of bailouts, Russell says it's more than half the mutual fund assets in Canada, five times Warren Buffett's net worth, and more than the market value of Wal-Mart.

A $5.5 million opportunity for each of 55,000 financial advisors

Russell sees that mountain of cash sitting on the sidelines as a great opportunity for financial advisors to get their clients to put the money to work and build their retirement nest eggs. The brochure points out that $300 billion works out to $5.5 million each for the 55,000 financial advisors Russell estimates are practicing in Canada. Pinto said Russell does business mainly with advisors in the MFDA and IIROC channel, and that when life insurance agents and others are included, the total number of advisors may be 100,000.

Fixed income funds better than bond ladders?

Asked about longer-term bonds and the risk of rising interest rates, Pinto said fixed income still needs to be part of broadly diversified portfolio. But rather than a ladder of bonds, he thinks fixed income funds are a better bet if they hold a mix of government and corporate bonds of various maturities. Russell sells six pool funds, including two Fixed Income Pools and a Diversified Monthly Income Portfolio.

For younger investors still at least 20 years from retirement, Pinto suggests a mix of 65% equity to 35% fixed income. For investors already in retirement or approaching it, he suggests making the mix the reverse: 65% fixed income to 35% equiuties. That can be delivered by the Russell Retirement Essential Portfolio. It also has a Canadian Dividend Pool and a Managed Yield Class pool. 

For more, click here. There you can find Pinto featured in various videos.

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Source The Wealthy Boomer : Retirement

Older Canadians aged 50 or older — most of them post-war "baby boomers" — are sitting on some $300 billion in low-growth investments, according to Russell Investments Canada Ltd. Based on data compiled by Ipsos Reid, it found this group is holding about 25% in GICs (Guaranteed Investment Certificates) and High Interest Savings Accounts in their portfolios: the most in those investments in nine years. 

"Investors have had to deal with significant market volatility over the past two years, so it is expected that many Canadians have a lower risk tolerance and a higher desire for security," says Russell managing director Fred Pinto, Distribution Services [pictured] in a release issued this morning. "However, too many Canadians are earning unnecessary low returns.  GICs and savings accounts do not yield enough after-tax returns to position portfolios for retirement and deliver the income needed in retirement, particularly if you factor long-term inflation expectations."

In a brochure entitled 300 billion reasons to talk to Russell Investments,  the firm says the average 3-year GIC currently yields "barely over 2.0%" while a typical High Interest Savings Account pays less than 1.5%. After taxes, that won't even keep pace with inflation.

In an interview, Pinto says simply "It's not a good time for cash. Investors should move up the risk spectrum." 

Double-digit gains last year from taking slightly higher risk

Pinto points out that some globally-managed bond and conservative balanced funds posted double-digit gains last year. Such investments do entail taking on slightly more investment risk, but "are much more able to address longevity risk – the risk of outliving one's money in retirement."

While $300 billion may not seem that huge in this era of bailouts, Russell says it's more than half the mutual fund assets in Canada, five times Warren Buffett's net worth, and more than the market value of Wal-Mart.

A $5.5 million opportunity for each of 55,000 financial advisors

Russell sees that mountain of cash sitting on the sidelines a great opportunity for financial advisors to get their clients to put the money to work and build their retirement nest eggs. The brochure points out that $300 billion works out to $5.5 million each for the 55,000 financial advisors Russell estimates are practicing in Canada. Pinto said Russell does business mainly with advisors in the MFDA and IIROC channel, and that when life insurance agents and others are included, the total number of advisors may be 100,000.

Fixed income funds better than bond ladders?

Asked about longer-term bonds and the risk of rising interest rates, Pinto said fixed income still needs to be part of broadly diversified portfolio. But rather than a ladder of bonds, he thinks fixed income funds are a better bet if they hold a mix of government and corporate bonds of various maturities. Russell sells six pool funds, including two Fixed Income Pools and a Diversified Monthly Income Portfolio.

For younger investors still at least 20 years from retirement, Pinto suggests a mix of 65% equity to 35% fixed income, something delivered by the Russell Retirement Essential Portfolio. It also has a Canadian Dividend Pool and a Managed Yield Class pool. 

For more, click here. 

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Source The Wealthy Boomer : Retirement

For the most part, Canada's retirement gurus approve of the CD Howe recommendations to bring RRSP and Defined Contribution pensions into parity with the Defined Benefit pensions enjoyed by politicians and civil servants. Further details are in my column today in the Financial Post: Raise RRSP limits to help rebuild losses.

Here, unaltered, is an email from Mercer's actuary Malcolm Hamilton [pictured.] Below is further input from CARP vice president of advocacy Susan Eng and financial educator and author Talbot Stevens. To make clear their authorship, I've once again italicized their words. They begin across from their respective photographs:

The C.D. Howe Backgrounder reminds us that there are many changes to the Income Tax Act that would improve our retirement system. These should not be delayed until every other aspect of the pension system has been addressed.  

Talbot Stevens: "hard to argue against fairness"

London-based financial educator Talbot Stevens — author of Financial Freedom Without Sacrifice, pictured right — also strongly supports the recommendations:

I completely agree with William's key suggestions for improving the retirement savings system.  I have always felt it would be more equitable and effective for an increase in the RRSP contribution ratio of income, instead of higher absolute limits (as IFIC has lobbied for).  It's hard to argue against fairness, and as Mr. Robson points out, if the pension savings for federal public servants equates to 34% of income, then the rest of Canadians should be allowed to save tax-sheltered at the same level.

CARP's Eng: Proposals "nice" but still need for comprehensive reform

CARP's vice president of advocacy Susan Eng [pictured left] is also supportive but still thinks the country needs more than tweaks but "comprehensive reform" like CARP's own proposal for a Universal Pension Plan. 

Overall, all the proposed changes are nice to have but they continue to ignore the need for comprehensive pension reform. Tinkering around the edges is no substitute but people will be encouraged that the public scrutiny on retirement insecurity has prompted good ideas to come forward. I just hope they do not "exhaust the field" leaving the major gaps unfilled.

On moving the RRIF threshold from 71 to 73.

That would be welcome but it does not help people already age 73. CARP advocates a two year moratorium on all RRIF withdrawals and further has always opposed the RRIF system altogether. RRSPs were promoted on the basis that they would help people save for retirement because of the tax deferral and that taxes would be paid at lower rates when people retired. Forcing people to withdraw their savings and pay taxes on them when it was the least opportune time was not part of the bargain.

Reminder of RRSP live blog Friday morning

This is Jon again. A reminder that tax-assisted pensions, retirement, TFSAs and RRSPs are all fair game for a live blog I'm doing for the Post on Friday morning (Feb. 12), from 10 am to
11:30 am. Details here. Judging by the comments on the original Robson post earlier Thursday, it could be a lively session.

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Source The Wealthy Boomer : Retirement

Now here's something those whose RRSPs were shattered by the 2008 crash should welcome: raising RRSP contribution limits from 18% of earned income to 34% of earned income, and raising the maximum dollar amount proportionally, from $22,000 to $42,000.

That's the eminently sensible suggestion from C. D. Howe Institute president and CEO William Robson [pictured].  In a backgrounder containing suggestions for the 2010 federal budget, Robson says Ottawa should provide more tax deferrral room for both RRSP savers and members of employer-sponsored Defined Contribution pension plans. "Using the federal Public Service Plan as a benchmark suggests raising the contribution limit from 18% to 34% of earned income" as well as almost doubling the current $22,000 maximum to $42,000.

Extend RRSP life to age 73 from 71

The paper,  entitled Cutting Through Pension Complexity: Easy Steps Forward for the 2010 Federal Budget, also recommends raising the age at which people lose access to tax-deferred saving and must start withdrawing funds:  from age 71 to 73. Robson also suggests giving holders of Registered Retirement Income Funds (RRIFs) and Life Income Funds the same spousal income-splitting opportunities as recipients of annuities from pension plans. The government should also make the pension credit available to those drawing income from RRIFs or LIFs "regardless of age, as it is to recipients of annuities from pension plans."

Further changes to the Income Tax Act would make retirement-related services more readily available to employees of small organizations and to the self-employed, Robson suggests.

Redress Pension Adjustment inequity between DB plans and DC/RRSPs

The big suggestion is to bring RRSPs and DC plans to closer parity with the traditional Defined Benefit pensions which are enjoyed primarily by politicians and government workers and — less and less, unfortunately — some in the private sector.  As things stand, savers in DC/RRSPs "get less generous tax deferral than do most DB participants," Robson writes. That's because the Income Tax Act uses a "Pension Adjustment" [the PA shown on T-4s] to estimate how much saving people without DB plans need to undertake in order to accumulate the same amount of wealth as those with DB plans.

However, the Pension Adjustment "assumes relatively high returns and overlooks important provisions often found in public-sector plans" and so "tends to underestimate the required amounts of saving." As a result, annual contribution limits for DC plan members and RRSP owners are set relatively low. 

Similarly, larger contributions for past service are possible in DB plans than in DC plans and RRSPs. When DB plan assets fall short of liabilities, the tax act lets employers rebuild the plans with no limits, a practice encouraged by regulators and which many companies implemented after the crash. But as millions of Canadians hurt by the 2008 meltdown know, when values fall in DC plans and RRSPs, annual contributions limits "make no accommodation," Robson says. 

Ultimately, lifetime savings limit would help investors recover from 2008 crash

Therefore, the "first step" is to boost tax deferral room for RRSP and DC savers.  Ultimately, a lifetime pension saving limit would help those individuals recover from setbacks but the first step would be the recommendations made in the report.

The report makes no mention of the Tax Free Savings Accounts (TFSAs), which were long ago another CD Howe Recommendation when they were called Tax Prepaid Savings Plan. Nor does the report mention the suggestion of actuary Malcolm Hamilton that TFSA contribution room be made retroactive to age 18 — or a similar lifetime TFSA contribution amount be implemented — in order to similarly help those whose RRSPs and DC plans were hurt by the crash.

For the study go to: http://www.cdhowe.org/pdf/backgrounder_126.pdf

To comment, tune in to live blog Friday morning:

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 P.S. The CD Howe report is timely and no doubt will be discussed in the live blog on RRSPs scheduled for tomorrow morning between 10 am and 11:30 am. Details here. 

 


Source The Wealthy Boomer : Retirement

Americans are twice as likely to worry they'll run out of money in retirement than Canadians,  according to the first annual TD North American Report on Retirement. Close to 70% of Canadian retirees say that their retirement is exactly
or mostly what they were expecting, in contrast to only 47% of
Americans. 28% of American retirees say they might need to find a job to supplement their retirement income (vs 10% of Canadians.)

One in four Americans say they are not living their retirement
dream at all and 29% of American retirees say their retirement is quite
different from what they imagined.

Financial crisis has spawned a North American retirement crisis?

 "As a North American institution, we have an enduring focus on what our
clients are experiencing on both sides of the border. We've seen
firsthand that the financial crisis and resulting economic impact has
been tough on everyone," says Frank McKenna, Deputy Chair, TD Bank
Financial Group [pictured left].

"However, north of the border, Canadians' more
conservative approach to finances and our country's intact banking
system have given retirees greater peace of mind and an increased
likelihood of living out their retirement the way they planned."

McKenna was mentioned in a press release issued this morning. TD Bank Financial Group is North America's six largest bank. The poll of 1,009 retired Americans and  1,002 retired
Canadians (aged 55 to 70 so most but not all would be baby boomers) was conducted by Angus-Reid Public Opinion in mid January.

Americans more worried about their finances than Canadians

TD says how retirees feel about retirement is linked to their  financial situation. American retirees are more concerned about their finances than Canadians: 38% of Americans say they definitely did not save enough money, versus just 21% of Canadians. While 21% of Americans worry they did not start saving early enough, only 10% of Canadians feel that way.

"There is a somewhat negative stereotype that Canadians are staid when it comes to finances," says TD Waterhouse senior vice president Patricia Lovett-Reid [pictured, right], "Perhaps, but when it comes to banking and investing, staid is good."

Half of Americans spending less in recession but enjoying life, vs 37% of Canadians

The  findings show Americans are still enjoying life,  though they did not weather the recession as well as their northern neighbours. Half of Americans surveyed are now spending less as because of the recession but are still enjoying themselves (compared to 37% of Canadians).

But one in four American retirees are worried they will run out of money: 28% say they might need to find a job to supplement their retirement income. Canadian retirees are more confident: 30% say they were not impacted by the recession, with 12% concerned they might run out of money and 10% considering job hunting.

Americans focus on physical health, Canadians on financial health

The top advice from American retirees is not financial advice. Americans first recommend that retirees take better care of their health (53%) and second, talk to their spouses before retiring to ensure they have the same vision (50%), followed by maxing out their 401(k)s (38%).

By contrast, Canadians are more focused on their financial health. The top advice from Canadian retirees is to max out an RRSP (48%) and then to talk to their spouses about retirement dreams (46%) followed by taking care of their health (36%).

"These findings reflect my experience in both countries, that while Canadians and Americans are incredibly similar in many ways, there are significant differences in attitudes and behaviours," says McKenna. "With an aging population in both countries, it is essential to understand the current experiences of retirees, both positive and negative."

Biggest mistake: not starting saving till past 40

Asked about the mistakes they made in planning for their retirement, many say they did not start saving until they were over 40 (28% of Canadians retirees and 32% of Americans). And the second biggest? Living beyond their means for most of their life: cited by 13% of Canadians and 19% of Americans.

Among the smartest things retirees say they did in planning for their retirement were working for a company with a matching retirement savings plan or pension plan (39% of Canadians and 27% of Americans) and living within their means (28% of Canadians and 27% of Americans).

"Living within your means is ideal, particularly if you know what those "means" will look like in retirement," says Lovett-Reid. "What you want for retirement are a series of choices, not a series of takeaways. Talk to an advisor about how you may envision your retirement and develop a custom financial plan to help you get there."

For more, click here. 

P.S. Added Thur., Feb. 11: A version of this blog ran in various Canwest dailies today under the headline Americans finding ideal retirement only a dream. 

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Source The Wealthy Boomer : Retirement