OAS Changes Won't Disrupt Canadian Retirement Plans

April 5, 2012 (PLANSPONSOR.com) – Many Canadians affected by the proposal to increase the age Canadians can collect Old Age Security (OAS) payments to 67 were already planning on working past age 65.

Consumer polling conducted in late 2011 among Canadians in the 45 to 54 age group, the first major cohort to experience the changes to the OAS rules, found that while the average target retirement age for these Canadians is 63, more than two-thirds plan to stay engaged in the workforce after they retire, including taking on part-time work (43%), or doing some occasional consulting (22%). This suggests these Canadians were already planning to supplement their income to some extent and stay active in the workforce.

Looking ahead to their sources of income in retirement, 30% said they plan to rely primarily on their own savings, while 25% said they believe government payments would be a key source of income. Another 25% named private pensions as their primary source of income.

One-quarter (26%) of respondents said they expect to carry some debt into retirement. One in six (17%) Canadians between 45 and 54 said they will still have a mortgage payment when they retire.

The survey data was gathered among a sample of 1,116 employed Canadians from September 14-21, 2011.