Three-quarters (74 per cent) of Canadians aged 24 to 44 say the conventional approach to retirement — halting work at age 65 to enjoy a life of leisure — is an outdated concept, according to a new survey by Leger on behalf of Wealthsimple.
The survey, which polled more than 1,500 Canadians, found roughly 60 per cent said they don’t have access to a workplace pension plan. Among those aged 25 to 40, more than half said they won’t enough savings to retire in the conventional sense and are looking at investing as a way of maintaining their lifestyle.
Read: Just 69% of Canadians confident in their retirement prospects: survey
As well, 19 per cent of respondents 25 to 44 years old said they hope to grow their family, while two-fifths (41 per cent) said they’re still saving to purchase a home. Notably, 41 per cent of respondents aged 25 to 44 said they’re motivated to retire well before age 55 so they can chase bigger ambitions related to becoming involved in small business, consulting, a not-for-profit organization, a passion project or a creative pursuit.
More than half of all respondents said investing has given them more flexibility and choice than they could have imagined and 55 per cent of employees aged 18 to 24 said they view investing as a way to fulfill the ambition of retiring. Despite this, just seven per cent of respondents aged 18 to 24 said they’re planning for a traditional retirement.
“This new outlook on retirement is motivated by more than a challenging economic climate,” says Mike Katchen, Wealthsimple’s chief executive officer, in a press release. “It’s a new perspective on the future driven by younger generations. They are looking for flexibility, personalization and control over their future, rather than feeling controlled by conventional wisdom.”
Read: Employer matching key to supporting young workers’ retirement readiness: report