Thirty percent of Canadians over the age of 55 have had their retirement cut short, with 48% being forced back to work due to financial reasons, according to a survey by ING Direct.
A related ING Direct survey finds that the bulk of previously retired Canadians who re-entered the workforce for financial reasons did so because they did not have enough money saved for retirement (33%) or they faced increased living costs (31%). Of the half who were forced back to work for financial reasons, 31% returned on a full-time basis.
For many once-retired Canadians, the reality of life after work isn’t what they imagined.
Forty-five percent say the cost of living was higher than anticipated, and 27% say it was more of a financial struggle than originally thought. If given the chance to revisit their 20s and 30s, Canadians who re-entered the workforce say they would have found a way to save more for retirement (29%), they would have started saving earlier (24%) or they wouldn’t have spent money so mindlessly (11%).
“The reality of retirement for many Canadians is a sobering reminder that you can’t put your financial future on the back burner,” says Peter Aceto, president and CEO at ING Direct. “Among the many other financial priorities we face during our prime working years, we need to make sure that retirement planning doesn’t get overlooked.”
Forty percent of survey participants say they would have maxed out their annual RRSP contribution if they had a better understanding of how much was needed to retire, while 16% felt they would have benefited from a good financial role model. Interestingly, 20% confessed that nothing would have motivated them.
For those having to work through their golden years due to financial reasons, 58% believe that they’ll be able to retire in five years, but 24% of respondents are still only hopeful.