Forty-seven per cent of Canadians, who are 40 years of age or older and expect to be single in retirement, worry about running out of money, according to a new survey by TD.
TD's Retiring Solo survey, released Jan. 23, showed that those planning to retire alone are fearful of rising daily living expenses (63 per cent); not having enough money for necessities (41 per cent); and increasing healthcare costs (39 per cent).
"Facing retirement alone is becoming increasingly prevalent, but what is striking in these findings is the high level of anxiety that comes with this trend," said Rowena Chan, Senior Vice President, TD Wealth Financial Planning. "Canadians planning to retire solo are acutely concerned about whether they are saving enough to meet the wide spectrum of costs they will encounter in their older years – from day-to-day living expenses, to providing enough for their own care in the event of illness."
The survey showed that 65 per cent of Canadians, who are 40 years of age or older and currently single, separated, divorced or widowed, feel they will most likely be living 'solo' when they retire.
At a disadvantage
Thirty-nine per cent of those expecting to retire solo believe they are at a disadvantage compared to dual-income couples when it comes to saving for retirement. Forty-six per cent of those polled say they struggle to save for retirement while managing day-to-day bills since they have to cover all their expenses alone.
"For those relying on a single income to fund their retirement, it's critical to think beyond day-to-day financial obligations and plan accordingly for the future," said Chan. "Meeting with a financial planner to put a financial strategy in place can help solo Canadians juggle their current financial demands while building resources for retirement."