Workers plan to delay retirement
FeaturedMonday February 02, 2015 Written by Tangerine
Today's workforce expects to continue working longer than previous generations.
According to a new survey by Tangerine, 90 per cent of retired Canadians say they were able to retire at the age they planned, and 77 per cent are now living the retirement lifestyle they envisioned. More than two-thirds of current retirees (69 per cent) finished their careers between the ages of 55 and 64.
But only 39 per cent of Canadians working today believe they will be able to retire in that same timeframe. In fact, about one in five (18 per cent) expect to work well into the 70s.
Fifty-three per cent of working Canadians believe they will be able to live the retirement they envisioned for themselves.
"These survey results show that the majority of working Canadians today do not expect to retire as young as our parents' generation," said Silvio Stroescu, managing director of deposits and investments at Tangerine. "The good news is that today's retirees show us that it is well within our reach to retire comfortably and on time, and that we just need to remain diligent in following through on our savings and investment goals to achieve the retirement lifestyle we desire."
The road to retirement
While half of all workers under the age of 30 say they have started to save for retirement, the majority (52 per cent) report not knowing how much money they'll need to save for retirement. And, of those people who have not started saving for retirement, 59 per cent say they don't plan to begin until age 40.
In total, 78 per cent of working Canadians say they have started saving for retirement. Of those who have begun to save, 39 per cent reported that good money habits passed along by their parents is their prime motivator.
Preferred methods of saving
More than half of all retirees (51 per cent) say that RRSPs were the most beneficial in planning for their retirement. When looking back at their savings and investments, 16 per cent of retired Canadians believe setting up an automatic savings plan would have helped in planning their retirement. Currently, only 10 per cent of the workforce has an automatic savings plan set up.
An online survey was conducted among a sample of 1,003 retired Canadians and 1,007 working Canadians over the age of 18 between Jan. 9 and 14, 2015. The margin of error is +/- 3.1 per cent, 19 times out of 20.