A new study from BMO Financial Group indicates that many Canadians dream of becoming entrepreneurs during their retirement years.
According to the poll, 39% say they anticipate starting their own business after they reach age 65. More generally, 81% plan on working in some capacity during their retirement.
The top reasons identified by Canadians for starting their own business in retirement are:
- the need for additional income (75%);
- a desire to stay sharp/mentally focused (62%); and
- it would be an enjoyable hobby (53%).
“It’s clear that many Canadians are looking to generate additional income during their retirement years,” said Marlena Pospiech, senior manager, BMO wealth planning group, with BMO Financial Group. “With the decline in employer-sponsored defined registered pension plans and reforms to government pension plans, there’s now a greater need for people to supplement their income during retirement to compensate for that income gap. This is particularly true for those who haven’t been saving aggressively for retirement through retirement savings vehicles such as RRSPs and TFSAs.”