Why Canadians Are Financially Prepared For Retirement Essay
There is much debate on whether Canadians are financially prepared for retirement. For every study claiming that Canadians are saving enough for their retirement, there is another that claims savings levels are too low. However, one point that nearly all experts will agree on is that retirement is changing. Traditionally, the retirement age in Canada has been set at 65 years old. This is when government support is intended to start, and the actual average age of retirement in Canada has hovered around this age. However, advances in the health field are allowing people to live longer and be more active in their later years. As people live longer, they have to work longer to maintain their standard of living. Lastly, working longer could be beneficial to individuals, as well as to the economy. This paper will discuss how these reasons are causing the timing of retirement to change. It was researched and developed using articles found in the NAIT library database, the Statistics Canada database, and other sources from financial experts.
PEOPLE CAN WORK LONGER
In 1965, Canada introduced the Canada Pension Plan (CPP). At the time, the average life expectancy for someone born in Canada was 68 for males and 74 for females (Statistics Canada, 2012). The age to start collecting retirement benefits was set at 65, so males could expect to collect for only 3 years. Since then, living conditions and medical advancements have caused life expectancy to increase.…