Unfortunately, retirement is something that most people don’t begin to take seriously until much later in their life. Realistically, it is a good idea to begin considering retirement plans quite early on to make it easier when it comes around.
There are a multitude of options that can make saving for retirement quite easy and as long as it is started early enough, it should barely be a concern when it comes around. Let's take a look at the ideal time to start saving for retirement and the options available to help make it as easy as possible.
The Best Age to Start Saving for Retirement
While it may sound way too early, the best age for people to start saving for retirement is as soon as they enter the workforce, or at least in their 20s. Of course, this sounds like a far shot from being at the point of retirement, but starting to prepare and save this early can save it from becoming a difficulty later in life.
The longer people wait to start saving for retirement, the more they will have to make up down the road, to live comfortably and not worry financially at least. According to CNN Money regarding saving for retirement early, “Say you start at age 25, and put aside $3,000 a year in a tax-deferred retirement account for 10 years – and then you stop saving – completely.
By the time you reach 65, your $30,000 investment will have grown to more than $338,000, (assuming a 7% annual return), even though you didn't contribute a dime beyond age 35.” These figures are from United States rates, but it still shows the point even in Canada.
How Much Does the Average Canadian Have Saved for Retirement?
When it comes to retirement, there is a large difference between what should ideally be saved and what is realistic. There are all kinds of rules and guidelines that people can try their best to follow, but life happens.
Difficulties and troubles may often not allow people to put away as much as they would like to for retirement. BNN Bloomberg says that the average retirement savings for Canadians in 2018 were around $184,000. This may sound like a decent amount, but it is far below what would be needed for a quality retirement.
How Much You Should Have Saved for Retirement
There are many people likely wondering how much they should have saved for retirement, but there are multiple factors to consider to get an accurate estimate for this. This number will largely depend on the desired retirement lifestyle, costs of basic needs, and whether the idea is to retire at home or in a nursing home.
According to Spring Financial, the estimated amount to have when retiring at 65 is around $1,750,000. Realistically, based on the average Canadian retirement savings, many people are likely not where they need to be.
As mentioned above, saving for retirement should ideally be started as soon as people are working, but even for middle-aged individuals, it is never too late to improve saving habits.
Searching for Quality Retirement Home Options?
If you are looking for retirement homes for yourself or a loved one, then give us a call here at Symphony Senior Living. We have multiple facilities around Canada and they are designed to provide the highest possible quality of life during retirement. Our goal is to treat all of our residents like we would treat our family members and provide care that will give them an enjoyable retirement. If you have any questions about our retirement facilities, you can contact us at (417) 214-1608.