Retirees Needs : Current Savings

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Retirees needs Current savings McKinsey & Co. performed a financial survey constituting 12000 households that show 83% of the Canadians are well able to maintain their standard of living even after they stop working. The survey consisted of 9000 working households, and 3000 retired households. The survey shows the advantages of traditional defined benefit (DB) pension plans which allows a guaranteed level of income in retirement showing that 91% percent of mid to high income Canadians with a DB plan are well on track to maintain their previous standard of living. The survey also demonstrates that the people with Defined Contribution (DC) or group RRSP pension plans will have enough income to maintain equal spending patterns in retirement as before. The survey used for the data assumes the retirees will have similar spending habits in the future and it is highly possible that the future generation of retirees might spend more and have higher income needs as a result. The process of saving for retirement constitutes of both utilizing RRSP and tax free savings account (TFSA) as well as other types of investment tools. However numbers from statistics indicate that Canadians are saving a minor 4% of their current disposable income despite the huge amount of dollars invested in RRSP and TFSA and therefore have plenty to add to their current retirement basket. In 2011 the total RRSP investments stands at approximately $34 billion which is a rise from $33 billion in 2010. If an
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