Retirement in Canada is becoming increasingly challenging, with many retirees facing significant obstacles. Here are six major reasons for these struggles:
1. Rising Cost of Living
The cost of essentials like groceries, healthcare, and utilities has skyrocketed due to inflation, making it difficult for retirees on fixed incomes to keep up.
2. Inadequate Retirement Savings
Many Canadians approach retirement with insufficient savings. A report by Deloitte Canada highlights that only a fraction of retirees have financial assets sufficient to sustain them through retirement, leaving many dependent on minimal pensions
3. Housing Affordability Crisis
With rising property taxes and interest rates, maintaining homeownership has become more difficult for seniors. Affordable housing options for retirees, including those needing assisted living, remain scarce
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4. Living Longer Without Preparedness
Canadians are living longer, often outliving their financial plans. Extended retirements mean higher healthcare expenses and more years of income reliance, leading to financial strain for many
5. High Healthcare Expenses
While Canada offers universal healthcare, certain out-of-pocket costs such as medications, dental care, and long-term care services are not fully covered. These growing expenses heavily burden retirees with limited incomes.
6. Returning to Work
Insufficient savings and financial insecurity have forced many seniors to delay retirement or rejoin the workforce. Part-time or lower-wage jobs often become a necessity rather than a choice, limiting opportunities for true relaxation during retirement
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These factors emphasize the importance of robust retirement planning and better policies to support Canada’s aging population.
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