Living longer comes with increased concerns on everything from health to loneliness to having nothing left to leave heirs, according to a BMO Wealth Management report called The Aging Economy: Improving with Age.
Today’s seniors have tremendous influence on the Canadian economy and their numbers are increasing at a faster rate than the number of children born.
The report reveals that living longer has not changed the number of years spent in retirement because Canadians are extending their working years. But there are a number of other issues they have to face.
Health and fear of running out of money top two concerns
According to the survey, 51 per cent said they are concerned about health problems and costs as they age; another 47 per cent said they fear they might run out of money; 40 per cent said they don’t want to be a burden on their family; 20 per cent were concerned about loneliness or having no purpose; 14 per cent said they worried they had nothing left to leave to heirs while 13 per cent said they are concerned about becoming a victim of abuse, neglect or fraud.
“In order to have the long and fulfilling retirement that most Canadians want, effective financial decisions need to be made about savings strategies, retirement and estate planning goals,” said Chris Buttigieg, director, Wealth Institute, BMO Wealth Management. Buttigieg said it’s important that today’s advisors help Canadians navigate the changing terrain of tax rules and the economy to help clients come out on top.
BMO suggests spouses talk to each about accomplishing life goals early so the two can compromise if need be and plan to achieve their financial goals as well as prepare for healthcare costs. It also says both partners need to take into consideration ways of how to reduce taxes, an important consideration when one partner’s retirement income is much higher than the other’s.