Survey shows Canadians plan to work to the end
27-01-2003
Caroline Cakebread

Conducted by Decima Research and sponsored by Investors Group, the survey reports that 74% of non-retired Canadians plan to rely on earned income as their primary or secondary source of retirement income. That's in sharp contrast to today's reality--only 23% of retired Canadians are currently working.

The survey also highlights an alarming gap between expectations and reality when it comes to how Canadians view retirement. Although a strong majority of those surveyed believe work will account for some of their retirement income, most working Canadians (59%) have not yet determined how much money they will need when they retire.

The survey shows a lack of interest in learning more about retirement planning. Forty-one per cent of Canadians plan to retire before the age of 60, even though 53% do not know how much retirement will cost them.

The abysmal performance of world equity markets has not impacted the retirement plans of most Canadians surveyed. But the 19% who did make changes said earning more in retirement while saving and spending less accounted for their adjustments. And out of the many Canadians who don't plan to retire, 72% aim to cope with poorly performing markets by earning more, while 80% plan on saving more. Of the retired respondents, 78 % plan to counter the effects of volatile markets by spending less, and 80% plan to lower their lifestyle expectations.

The Canada Pension Plan (CPP) figures prominently in the expectations of many, with 76% of Canadians saying they view CPP payments as either their primary or secondary source of income in retirement.

Seventy-three per cent of those surveyed plan on using their RRSP savings while 62% of respondents intend to use their employer pensions as their primary or secondary source of income. Twenty-two per cent of those surveyed expect their inheritance to provide for them in retirement.