More than half (56%) of Canadians are not planning on an early retirement and will work as long as possible, according to a recent RBC RRSP poll. In fact, when asked if they would retire today if they had the money, 82% said they would continue to work and 53% would work part time or occasionally.
Lee Anne Davies, head, advanced retirement strategies, RBC, says it was surprising to find that even if Canadians had enough money to retire, more than eight in 10 would still choose to work. “I think that this is a real reflection of the priority that work plays in the lives of Canadians,” she says. “Wanting to be productive, the satisfaction of each day, giving back, working with people, and the structure they get from work. It’s not so much ‘I love what I’m doing;’ it’s more ‘I’m comfortable, I’m afraid of change and I haven’t really paid attention to what I want my future to look like.’”
But the study found that these perspectives tend to change as people approach retirement. The 56% that said they plan to work as long as they can dropped to 43% for participants 55 years and older. Davies suggests this is a result of changes that occur with age. Priorities and interests may shift as children move out on their own, friends begin to enjoy retirement and health problems make work more challenging.
What many Canadians don’t realize, is that these factors and others might also make it difficult to continue working after a certain age as well as to re-enter the workforce after retirement. According to the study, 38% believe they will continue to work after the age of 65 and that seven out of 10 Canadians believe they will be able to go back to work in the event that they require more income in retirement.
“It may not be realistic for some people to think that the workplace might want them back,” Davies says. “People underestimate how their interests might change. Also, they may have outdated skills, the job may not be of interest to them anymore, they may struggle with health issues and ageism also exists in the workplace.”
A way to avoid running into these problems in the future, adds Davies, is by planning now. Of the 38% that said they believe they will be working after the age of 65, half of them admitted being concerned that they have not been saving enough. And, while the study found that Canadians with RRSPs plan to contribute $6,000 for the 2007 tax year—twice as much as in 1993—only three in 10 plan to maximize their contributions.
The 18th annual poll, which was conducted by Ipsos Reid, surveyed 1,200 adults across Canada.
To comment on this story, email kirstyn.brown@rci.rogers.com.