Almost half say they may have to retire later than planned
By Jennifer Hughes
Almost half (46%) of Canadians aged 55 to 64 say they might postpone retirement, and about 15% think they’ll never retire, according to a recent survey. The number of those who expect never to retire rises to 22% among the self-employed.
The online survey, conducted in January for the investment management firm Franklin Templeton, polled 2,012 Canadians and 2,002 Americans aged 18 or older. Just over a fifth (21%) of Canadian baby boomers aged 55 to 64 say they have nothing saved for their retirement. The figure among the young American boomers was 17%.
According to the 2011 Census, nearly a third of Canadians are baby boomers. However, older boomers (aged 65 to 73) tend to be a different position from that of younger boomers. Young boomers usually have to support financially dependent children and perhaps care for their parents, which means that they must make more sacrifices when it comes to saving. Older boomers, on the other hand, are less likely have dependent family members whom they must support.
Among those seeking to retire within the next five years, 86% say they’re worried about being able to pay expenses in retirement, while 52% are worried about outliving their retirement savings and about the sacrifices they may have to make. With people living longer thanks to medical advancements, there is a chance that many will likely outlive their savings.
“With life expectancy increasing and retirement savings becoming ever more challenging, due to the high costs of living, we are seeing increased concern over having enough money for retirement across all generations,” said Matthew Williams, senior vice president of Franklin Templeton Canada.
Nearly three-quarters (73%) of pre-retired young boomers said that they experience stress and anxiety when thinking about retirement savings. However, working with a financial advisor can help: young boomers who work with advisors are 37% more likely to be actively saving for retirement than those who don’t, and just over three-quarters (77%) who do have an advisor said that they expect to generate enough income to last 30 years or more after they retire.