Good to know: Canadian retirees are a financially stable lot. Throughout their lifetimes, those with higher levels of education earned more and generally saved more for retirement. Good for them and the financial advice they received along the way!
But wait: higher education, better financial knowledge and higher income have also led to higher debt, according to the fascinating 2009 Canadian Financial Capabilities Survey from Statistics Canada. Those retirees with debt had median household incomes of $42,000 and median net worth of $295,000. Their debt was well under control, though: only 7% of total assets. More good news: 7 in 10 retirees with debt reported they had no trouble keeping up with bills and other financial commitments.
Digging even deeper, here is another startling fact: turns out that financial stability in retirement is also very much dependent on the way you manage your personal relationships along the way. Divorced people who are retired have the highest incidence of debt, and the lowest annual median income and net worth, compared with all other groups.
And so it appears that commitment to the right education, and the right conjugal relationship, can make all the difference to the quality of life, affluence and peace of mind you will have when you really need it. Yet, who must make those very important decisions about money and life? It’s the very young.
It’s Your Money. Your Life. Taking the time to guide young people pays off in building and sustaining strong financial dynasties. Are you reaching out to help them?