If you or your clients are approaching retirement, there are a number of factors at play. The least of these is the change in fortunes many people have experienced as a result of the world-wide economic turmoil that started in 2008.

Large numbers of Canadians who thought their retirements were secure have found themselves in an entirely different position than they thought they would be as they approach age 65.

What an individual chose to do in those days of panic in the markets will have a bearing on where they find themselves financially now.

If they were in a low-risk portfolio and managed to weather the anxiety and leave their portfolios in place, then they have likely recovered all they lost and then some by now. If on the other hand they chose to lock in their losses, they are now in a position where they are running out of time to make up what they lost.

At the same time, the parameters of retirement are changing profoundly. People are living longer, retiring earlier and being more active. It is predicted that retirees can be looking at an additional 30 to 40 years of life post-retirement.

Let’s look at the facts and figures to see exactly what’s facing retiring Canadians.

1. The boomers, who currently make up 46% of the labour force, appear to be retiring only from full-time paid employment. 24% of people aged 55 to 64 are self-employed, while workers aged 65 to 69 have increased from 11.5% in 1990 to 17.8% today.
2. Canada has one of the G8’s youngest populations; however, the median work age is still 41.4 years with inadequate numbers of workers to replace those retiring.
3. Those 65 and older have more than doubled in the last 35 years and will grow to 23% of the population by 2031, with implications for everything from health care to public pensions and social supports.
4. The percentage of pre-retirement income needed to fund a comfortable retirement varies depending on the source, from 60% to 85%. However, several recent reliable studies indicate that 75% to 85% replacement is a more realistic figure.
5. Meanwhile, Canadians in general are on track to replace only 50% of their pre-retirement income.
6. Those 55 and older are on track to replace 59% of income in general.
7. Contrast this with public thinking on this topic: 65% of people believe they will have a comfortable retirement. 19% believe their post-retirement income will be barely adequate, and 9% believe their income will not be adequate in retirement.
8. Two-thirds of Canadians see themselves doing some kind of work past traditional retirement age, whether from financial need or to keep involved with the work world.

The number of people covered by defined pension plans has been steadily and rapidly decreasing. Conversely, there is an increasing proportion of the population expected to provide for their retirement defined contribution plans and private savings.

It is clear that Canadians need to recognize their growing responsibility for their financial security during retirement.

One way to do this is to engage the assistance of a financial advisor. A recent retirement index study found that those who work with a financial advisor had a post-retirement replacement income of 64%, well above the national average.

So take heart. Save, have a plan, become financially literate and get financial advice now.