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Are you thinking about retirement preparing for it?

Well, it might all be for not as the dream of retirement

for many people is dying.

And I don't think this comes as a surprise to a lot of us.

We know it's getting more expensive.

And we feel like maybe we need to push out our retirement date.

But is retirement just going to be dead in general?

And we're just going to have to keep working forever.

I mean, I don't mean forever.

But you know, right up until the end,

Dr. Bonnie Jean McDonald is an actuary and director

of Financial Security Research at the National Institute on Aging

and joins me now to discuss.

Thanks so much for being here.

Thanks, God.

Great to be here.

Is the dream of retirement dying?

And if so, what do we mean by that?

What does that look like?

Well, what it usually means, God, is that we think of retirement

as you turn 65 and like all the names, pamphlets show.

You go golf, see me go to the beach.

Now that can still be true for some people.

But honestly, the big divide today is often between

whether people have workplace pension plans or people

who don't have them.

So effectively, you know, there's a story in the claims.

I was talking about a gentleman who's a writer

and how he really thought like he couldn't retire.

And naturally driven by the fact that, you know, basically people,

we've moved really away from having these kind of really great

pension plans that are workplace, which is making a lot harder

for your people to kind of get retirement ready.

And, you know, having that securing comes only once they go into it.

So how are people preparing for retirement

then, if not with pensions, how are they affording it?

Well, here's the R&E.

So what's happened is kind of in the semendees, the, you know,

private sectors, they stopped kind of providing these kind of what we call

the fine benefit pension plan.

And basically people were pulled to save more.

But the interesting thing about even if you're able to save,

which is really hard, especially, you know, a fine inflation and things like that,

even if you have a pot of money and once you get to retirement,

that's not necessarily going to replace your paycheck in a safe, affordable way.

What, you know, you really need the pension.

So based on my research, for example, we basically found there's basically

a third of Canadians who are going to be very vulnerable in retirement.

And these are not the people you typically think you think,

you know, low income folks, things like that.

And for sure, those people, you know, facing low income,

they have their own challenges, but we do have guaranteed income subplement

and the old age security that for a lot of Canadians actually give them a better

standard of living retirement.

The people who are actually most get risk are the people who are in the private sector

who don't really have a workplace pension plan that they can fall back on.

Do you find that more and more couples are more and more seniors?

Excuse me. Are relying on family?

I know that's a thing that I talked about a lot amongst my peers.

Yeah, so it's interesting.

I've done a ton of work on this as well.

And basically, you know, people go into retirement.

They're going to be getting their CPT or their QPP if you're in Quebec.

And then you'll also be getting your old age security.

So you're getting about $20,000 and it's kind of secure on going inflation

and the extension, that's going to last as long as you do.

Now beyond that, you know, the problem is not only are more people returning

with the baby boomers, people are also living longer.

Now, of course, as you live longer, it's not, you know, each year is not going to cost you the same.

And in the olden days, as an actuary, the old story was, as you get older, you've son less.

And of course, what was really happening there was that people were spending less

because they were getting more frail.

And then people got more frail.

Guess what?

Their families would step in and do on tape support, basically.

And when I looked into the data, this is kind of like the hidden secret

and financial planning for retirement.

Nobody talks about three out of every four hours of care that was being done for older adults.

It's actually being done by their adult children.

But baby boomers are not only going to be the first generation to live the longest.

They're all the first generation not to have these children.

So, you know, a lot of the time we're talking a lot about people prepare for retirement.

But, you know, my big concern is kind of not just those first five years.

It's actually more of the last 10 years of retirement that are going to be a lot more expensive.

And, you know, people just won't have the family support that they used to.

Unfortunately.

Yeah, that is a stressful thing to think about.

I know my sister and I are both like, oh, dad's living with you.

No, he's not.

I live with you, you know, like we kind of talk about it's all in jokes, of course.

But I mean, that's the thing.

I think there's a lot of people.

A lot of work.

Yeah, that are in my art situation are contemplating.

Dr. Bonnie Jean McDonald, an actuary and director of financial security research at the National Institute on aging.

Thanks so much.

I wish we had more time to speak.

Hopefully we'll be able to have you back on in the future because it's an interesting topic.

You're welcome looking for a cute have a great day.