The real reason people fail to save enough for retirement — and what you can do to limit the damage
Most economists report that you need savings of 10-15 percent to retire comfortably, but most Canadians are saving just over 7 percent. The main reason, according to retirees, is negative shocks while they are working. These unexpected expenditures include unemployment, health problems and divorce. In order to deal with these negative shocks and still save money, you can protect yourself with disability insurance, save money as if you’re planning for earlier retirement, and even insuring your marital union through Marriage Assurance policies. This allows you to “plan for the worst, hope for the best, and insure against the risks that you can.”
“Perhaps as important as how much you need to save to retire is an understanding of the things that prevent people from saving enough in the first place — despite their best intentions.”