There is a strong sentiment among Canadian Boomers that setting retirement clocks back a few years may be the best option to secure a steady income stream, according to a new research study from the BMO Retirement Institute.

And while the research indicates people are accepting of this notion, many may be making this decision without having all the necessary information.

The study reveals that 31% of Canadians who plan to retire in the next five years are considering delaying their retirement date.

Retirees are also thinking about returning to work. For those that are considering it, 41% definitely intend to return to paid work within the next year.

While more than two-thirds of respondents were accepting or happy about delaying retirement, almost half of pre-retirees say they do not know how much they will receive from their personal savings and investments.

“Money is the main reason people are working longer or returning to work. Staying mentally active is of secondary importance, but money is by far the top concern. However, many retirees and pre-retirees are making moves to bolster retirement savings by working longer without a clear understanding of their retirement income gap; the difference between how much is needed and how much is available from various sources including personal savings, employer and government benefits,” said Tina Di Vito, Director, Retirement Strategies, BMO Financial Group.

The study indicates that over 30% say they do not know how much they will receive from the Canada Pension Plan (CPP)/Quebec Pension Plan (QPP).

In addition, 42% of pre-retirees and 59% of retirees say they have not spoken with their financial advisor about the potential impact that delaying retirement or working longer will have on their financial/retirement plan.

“How Boomers choose to go about remaining or re-entering the workforce will shape their retirement lifestyle and a financial advisor can provide a realistic perspective on how such decisions impact income in retirement,” said Di Vito.

BMO Financial Group offers a simple online calculator to help pre-retirees and retirees get a clear understanding of how key variables such as current age, life expectancy and style of investing can impact one’s retirement savings. For more information please visit: www.bmo.com/RetirementCalculators

For the study, a Harris/Decima online poll was conducted for the BMO Retirement Institute between Feb. 26 and March 4, 2009 and is based on a sample size of 1,006 randomly selected retirees 55 years of age or older who indicated they “definitely or probably will return to work” and pre-retirees who are planning to retire in the next five years.

IE