Nearly half (48 per cent) of retired Canadians aged 50 and over stopped working earlier than expected, with 33 per cent doing so because of an unexpected health issue and 22 per cent doing so because they were asked by their employer, according to a new survey by CIBC.
The survey also found 38 per cent of retired Canadians wish they’d started planning for retirement sooner, while the same percentage wish they’d saved more outside their registered retirement savings plan and 22 per cent wish they’d retired later.
“Many Canadians underestimate their spending in retirement, or don’t realize that they may have to retire earlier than they expect to, leaving them unprepared to manage higher expenses than expected on a lower income than planned,” said David Nicholson, vice-president of CIBC Imperial Service in a news release.
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Respondents to the survey said they were most surprised by higher spending and unexpected costs, including repairs and renovations, financial support for children/grandchildren/parents, long-term care costs, health issues and a higher tax bill.
“There’s a lot we can learn from Canadians about their retirement experiences to help us steer clear of costly surprises,” said Nicholson. “. . . The key to mitigating surprises or coping with the cost of health issues is planning ahead for the life you want to live.”
Read: Sounding Board: Time to factor health costs in considerations of pension adequacy