Jan 23, 2018
Planning to retire solo? You are not alone
As life expectancy in Canada continues to rise, many Canadians are left feeling at-risk of outliving their retirement savings. In fact, TD's new Retiring Solo survey found that nearly half (47 per cent) of Canadians 40 years of age or older planning to retire solo share this concern – many 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.”
TD’s survey also found that nearly two thirds (65 per cent) of Canadians 40 years of age or older, and currently single, separated, divorced or widowed, feel they will most likely be living ‘solo’ when they retire. This finding corresponds with the 2016 Statistics Canada Census, which found that the percentage of one-person households is at an all-time high and is now the most common type of living arrangement.
Whether by choice or circumstance, retiring solo is arguably more difficult than for a couple. In fact, nearly four in ten (39 per cent) Canadians planning to retire solo believe they are at a disadvantage compared to dual-income couples when it comes to saving for retirement. With a single income, those polled (46 per cent) say they struggle to save for retirement while managing day-to-day bills as they have to cover all their expenses alone.
For those solo Canadians looking to become retirement ready, click here for some relevant tips and advice.