Northerners feel they can’t afford to retire

Timmins pet store owner Walter Palubiski has been looking to sell his shop and move on to the next stage of his life but worries whether it will be the retirement he hoped for as the cost of living continues to rise.

The 62-year-old Palubiski said inflation and rising gas prices are making it difficult to run his 13-year-old store and he’s having difficulty finding a buyer.

With declining health and his wife already retired, Palubiski said he's uncertain about the future.

"I want to enjoy life. I don't want to sit there and die right in the store, that's not my ideal," he said.

"I may have to just sell everything out and then sell the building for what I can get and get out."

Uncertainty is something a recent Angus Reid survey said is plaguing many older Canadians.

Want more northern Ontario news? Download the free CTV News app.

With just over 1,500 people aged 55 and older, the survey commissioned by Advisorsavvy, and the insolvency firm Bromwich+Smith, showed that well over half of respondents are delaying their retirement. It’s either due to high inflation or low savings. About 40 per cent said debt is forcing them to postpone retiring.

The client financial wellness director at Bromwich+Smith, Laurie Campbell, said many Canadians will likely have to spend several extra years in the workforce to secure their retirement plans, both in response to the financial challenges brought on during the pandemic and the current economic situation.

"Those individuals that may have planned for their retirement, based on a certain set of criteria. They are sadly in a situation where they realize that with this current inflation, retiring may be something they need to put on the back-burner," Campbell said.

"It's very serious. I think a lot of individuals that may have wanted to retire at 60, may be looking at their mid-60s for retirement."

The survey also showed that around 60 per cent of respondents worry about whether they will ever be able to retire and around 70 per cent are worried they could run out of money if they retire now.

She suggests erring more towards staying in the workforce a bit longer, instead of retiring and trying to return to the workforce later, which she said can be difficult for seniors.

The best course of action for older Canadians right now, Campbell said, is for them to take a deep dive into their finances.

"Use your accountant or your financial planner to help you crunch the numbers to make sure you can afford to retire," she said.

"You've got a home you want to downsize? What's the risk factor with interest rates going up? Your adult children may be relying on you financially because they've struggled with all these factors in their own lives."

Campbell said it's also critical to retire without any debt.

Palubiski said he was on track to do just that before the pandemic forced him to take on tens of thousands of dollars in loans that he could struggle to repay if he can't sell his building.

But he said he's set on retiring, regardless, but admits the financial blows of the last two years, from economic shutdowns to inflated costs of living and doing business, have been difficult to absorb.

"You just keep looking and saying, 'what's next? What is next,'" Palubiski said.