Even though an overwhelming 46% of the population feel that they will not be able to set aside enough money for this phase of life, 68% of Canadians said they would not consider returning to work once they retire even if they received an ideal offer to work full time in their dream job, according to a survey conducted by SOM Surveys, Opinions and Marketing on behalf of Desjardins Financial Security.
However, a majority (60%) of Canadians over age 40 realize that retirement will not happen overnight and expressed interest in gradual retirement once they leave the workforce. And, although 48% of Canadians are aware of the impending labor shortage, they are more likely to look for opportunities to work on their own terms, whether that be part-time consulting or turning a hobby into a business.
On average, these workers said they wish to retire at the age of 60. More than 40% of Baby Boomers (40 years to 54 years) wish to fully retire before the age of 55. The main challenge for those going into retirement will certainly be related to a change in personal income (75%). However, having to adapt to a change in daily activities will also dominate (68%).
Concerning the Canadian Pension Plan (CPP) and the Quebec Pension Plan (QPP), there is considerably more skepticism about governments’ abilities to pay out pension-plan benefits. A staggering 76% of Canadians feel the federal government is unlikely to meet its obligation. Quebecers have a similar lack of confidence (71%) toward the provincial government’s ability to pay out the benefits from the QPP. Only 6% of Canadians have faith in the CCP and the figure for the QPP is 5%.
Support from the employer to help people plan their retirement is a possibility for more than 40% of workers 40 years or older. This support consists mainly of seminars, information brochures, or the possibility of meeting with a financial planner. Employer support to plan for retirement is more common in Atlantic Canada (61%) than in British Columbia (20%).
Financial planners are more involved than they were before among those who resorted to someone else to do their planning. Ninety percent of non-retired Canadians used the services of a financial professional as compared to 70% among retirees.