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Most Canadians plan to work after retirement
OTTAWA -- Most working Canadians say their bodies are in better shape than their bank books, and many plan to continue working part-time after retiring to bolster their incomes, according to a survey released this week.
By The Vancouver Sun - January 5, 2007
OTTAWA -- Most working Canadians say their bodies are in better shape than their bank books, and many plan to continue working part-time after retiring to bolster their incomes, according to a survey released this week.
More than half admit they don't have enough money to live on if they don't.
However, the results of the survey by financial services giant Investors Group also suggests that may not be possible for many.
The poll found that 58 per cent of all working Canadians plan to do some sort of paid work in retirement, and only eight per cent say they have a health condition that might prompt them to retire earlier than planned.
"But working Canadians may want to pay mind to the lessons learned by retired Canadians," the analysis of the results cautioned.
Only 23 per cent of current retirees surveyed did some paid work after they retired, less than half the proportion of working Canadians who plan to keep doing so, the survey found.
Further, 21 per cent of retirees say they encountered a health condition that required them to retire early, nearly three times the proportion of working Canadians who say they have such a condition.
"As we age, health and other complications can come into play," Investors Group's Debbie Ammeter said in releasing the survey results. "It is critical to remember that you may not be able to work as long as you hope or plan to."
While 70 per cent of Canadians say they have established a regular pattern of physical activity, less than half have been as proactive and sought out help with their finances, the analysis noted.
"Canadians are increasingly focused on improving their physical fitness, but it is equally important to establish healthy habits to ensure sound financial fitness," said Ammeter. "Physical health and financial health are not mutually exclusive -- both are essential to longevity and a prosperous future."
Financial planning isn't being done until late in the game, the analysis said, noting that while Canadians on average say they think they'll retire at age 61, 42 per cent of retirees say they did not start thinking seriously about retirement until after age 50.
And the survey found that 56 per cent said they wouldn't have enough money to live on if they didn't work after they retire.
"Canadians are also overwhelmingly counting on RRSPs and government pensions as a source of income, but those currently in retirement are counting more on government programs," it said.
"Canadians are also relying on employer-sponsored pensions, but many are lacking knowledge about their plans," it said. "Of those with a plan, 51 per cent of working Canadians and 45 per cent of retirees did not know if their plan was defined benefit or defined contribution.
Defined benefit plans, under which a worker will receive a pre-set level of income and benefits in retirement, are considered superior to defined contribution plans, under which the benefits will depend on the returns earned by the plan's investments.
However, with the current pension crisis a lot of employers are switching to defined contribution plans under which they do not have to make up any shortfall.
© (c) CanWest MediaWorks Publications Inc.
source: http://www.canada.com/vancouversun/news/story.html?id=a42e8684-ffc8-4d9d-8dbe-924c1ce8fc41&k=83685
OTTAWA -- Most working Canadians say their bodies are in better shape than their bank books, and many plan to continue working part-time after retiring to bolster their incomes, according to a survey released this week.
By The Vancouver Sun - January 5, 2007
OTTAWA -- Most working Canadians say their bodies are in better shape than their bank books, and many plan to continue working part-time after retiring to bolster their incomes, according to a survey released this week.
More than half admit they don't have enough money to live on if they don't.
However, the results of the survey by financial services giant Investors Group also suggests that may not be possible for many.
The poll found that 58 per cent of all working Canadians plan to do some sort of paid work in retirement, and only eight per cent say they have a health condition that might prompt them to retire earlier than planned.
"But working Canadians may want to pay mind to the lessons learned by retired Canadians," the analysis of the results cautioned.
Only 23 per cent of current retirees surveyed did some paid work after they retired, less than half the proportion of working Canadians who plan to keep doing so, the survey found.
Further, 21 per cent of retirees say they encountered a health condition that required them to retire early, nearly three times the proportion of working Canadians who say they have such a condition.
"As we age, health and other complications can come into play," Investors Group's Debbie Ammeter said in releasing the survey results. "It is critical to remember that you may not be able to work as long as you hope or plan to."
While 70 per cent of Canadians say they have established a regular pattern of physical activity, less than half have been as proactive and sought out help with their finances, the analysis noted.
"Canadians are increasingly focused on improving their physical fitness, but it is equally important to establish healthy habits to ensure sound financial fitness," said Ammeter. "Physical health and financial health are not mutually exclusive -- both are essential to longevity and a prosperous future."
Financial planning isn't being done until late in the game, the analysis said, noting that while Canadians on average say they think they'll retire at age 61, 42 per cent of retirees say they did not start thinking seriously about retirement until after age 50.
And the survey found that 56 per cent said they wouldn't have enough money to live on if they didn't work after they retire.
"Canadians are also overwhelmingly counting on RRSPs and government pensions as a source of income, but those currently in retirement are counting more on government programs," it said.
"Canadians are also relying on employer-sponsored pensions, but many are lacking knowledge about their plans," it said. "Of those with a plan, 51 per cent of working Canadians and 45 per cent of retirees did not know if their plan was defined benefit or defined contribution.
Defined benefit plans, under which a worker will receive a pre-set level of income and benefits in retirement, are considered superior to defined contribution plans, under which the benefits will depend on the returns earned by the plan's investments.
However, with the current pension crisis a lot of employers are switching to defined contribution plans under which they do not have to make up any shortfall.
© (c) CanWest MediaWorks Publications Inc.
source: http://www.canada.com/vancouversun/news/story.html?id=a42e8684-ffc8-4d9d-8dbe-924c1ce8fc41&k=83685
