- Originally from our sister publication, Advisor.ca.
Once seen as a rarity, the idea of working during retirement has gone mainstream. A new survey by CIBC suggests that a substantial majority of Canadians—69%—plan to stay in the workforce in some capacity.
The largest percentage (45%) expect they will work part-time, either to supplement their retirement income or to maintain a feeling of productivity. Eight percent said they will continue to work full-time in retirement, calling into question their definition of retirement.
Twenty-four percent said they will take on occasional consulting work while retired. The entrepreneurial spirit appears alive and well, as 9% said they will start a new business. There is, of course, some overlap between these categories of work.
“Our CIBC poll shows that Canadians don’t view retirement as the end of their working lives,” says Christina Kramer, executive vice-president, retail distribution and channel strategy, CIBC.
“Whether Canadians choose to continue working because they enjoy their work, or they have determined the need to supplement their retirement income, it is important for Canadians to have a holistic retirement plan including savings and debt management so they have the financial freedom to take control of their retirement.”
Not surprisingly, the survey found retirement planning was the top financial priority for boomers, the oldest of whom have already hit traditional retirement age. Retirement planning was also listed as one of the top three priorities for all age groups.
Interestingly, there is a marked difference across the country in post-retirement work plans: the further west you live, the more likely you are to work in retirement. In Atlantic Canada, 60% planned to keep working; in Quebec, 61%. Seventy percent of Ontarians plan to keep working, while 73% of those polled in Manitoba and Saskatchewan said the same. In Alberta, 78% said they’ll stay in the workforce, while British Columbians were the most industrious, at 80%.
“Retirement planning is not only about saving money every month, it’s also about planning ahead to understand the type of retirement you want to have and the level of retirement income you need,” says Kramer.
Whatever one’s plans are, they can be derailed. While only 6% of Canadians between the ages of 25 to 34 said they would retire due to health reasons, one fifth of current retirees said health had forced them out of the workplace.
“While most Canadians may intend to continue working in retirement, unexpected life events do occur. Meeting with a financial advisor on an annual basis to ensure you’re on track to meet your retirement goals, and adjusting your plan as needed is important,” says Kramer.