BMO study revealed major concerns for 55 and overs – and cost of healthcare was top of the list
The architect of the latest BMO study into retirement concerns said it pays to be proactive rather than reactive when it comes to planning for the possibility of ill health.
The study, titled BMO Wealth Management: The Aging Economy concludes that it’s the end of retirement as we know it because of an increase in life expectancy and low fertility rates.
Yet, the main concern remains familiar, with 51% of respondents worried about the health problems and costs that come with living longer.
Other standout statistics from the report, which polled 55 and overs, revealed that 40% are worried about becoming a burden on their families and 47% per cent are afraid of running out of money.
In one possible explanation for the increase in grey divorce, 59% of respondents said they have differing opinions from their partners about their individual and shared financial goals.
A total of 33% per cent said they want to help their children financially in their lifetime even if they live beyond average life expectancy, while 25% were concerned about maximizing their retirement income and 22% expressed concerns about outliving their savings and investments.
Report author Chris Buttigieg said that while Canada has a degree of health coverage, critical illness insurance can provide piece of mind and private health insurance can cover you above and beyond what your province can.
He said: “Also, just looking at contingency planning: what if this happens? What if all of a sudden, we had an unexpected expense at a certain time? How would this impact the retirement plan? Some contingency planning would definitely help. Do we have enough savings in place or do we have the insurance we need?”
It’s stating the obvious but no one wants to think about death or illness while they are fit, healthy and in the prime of their life but Buttigieg said that the earlier plans are put in place the better.
He said: “In terms of securing your financial future for you and your family, you’ve got to be proactive rather than reactive. Once it’s happened, it’s going to be a lot more difficult at the time and, whatever it is, a death or disability, having some assurances in place will make it a little easier to deal with when the situation arises.”
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