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BABY Boomers have again distinguished themselves, writes Derek Miedema, a
researcher at the Institute of Marriage and Family Canada – this time by their lack of retirement savings.
In 2007, Statistics Canada found that only six percent of available RRSP savings
room was used by eligible taxpayers.
With many pension plans now underfunded, many Boomers may not be able to afford
to retire.
The good news, Miedema says, is that they may not have to.
He quotes Barbara Yaffe, who noted recently in the Vancouver Sun:
“The stars have mercifully aligned so that, in an era of depleted retirement
savings and underfunded company pension plans, most mandatory retirements have
been struck down by the courts.”
In such situations, employers can no longer force a person to retire just
because they’ve turned 65.
While Baby Boomers raised with a Freedom 55 mentality might not find this very
encouraging, employers and many seniors may be happy about it.
Those facing retirement may now continue to work in a reduced role, while they
mentor new employees to take over their jobs.
But not all seniors can continue to work. The rest may need help from their
children.
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A survey by the Investor’s Group, released in mid-October, found that 40 percent of those surveyed were
supporting one or more parents, at an average of $498 per month.
To read the full report, go to todaysfamilynews.ca, and search for ‘Underfunded.’
January 2010
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