Canadian entrepreneurs are more likely to delay retirement due to the current economic conditions than other baby boomers, a recent RBC survey has revealed.
According to the annual RBC RRSP Poll of more than 3,000 Canadians, conducted in October, 28% of boomers plan to delay retirement due to the economic downturn. Forty-three per cent of boomers say their retirement has been delayed between one and two years, 37% say three-to-five years and 9% say they don’t know.
Among Canadian business owners within five years of retirement, even more are planning to extend their careers, with 37% delaying retirement.
“Knowing when to leave the workforce is a tough decision,” said Lee Anne Davies, head of Advanced Retirement Strategies at RBC. “The best way to decide when to retire is to think about the lifestyle you want to lead in retirement and create a plan to help ensure financial stability and built-in flexibility to adjust to changing life and economic conditions.”
One-third of retiring boomer business owners, say they will never fully retire—a figure 19 percentage points above the Canadian boomer average.
When asked where they expect to be at 65, half of boomer entrepreneurs say they will be semi-retired or working part-time, compared to 40% of the general boomer population.
Only 37% of retiring boomers who own businesses expect to be fully retired at the age of 65, 10% less than the Canadian boomer average.
“Even for Canadian entrepreneurs who never intend to fully retire from their business, it’s important to regularly fine-tune their long-term plan,” said Davies. “Whether you foresee gradually stepping away from your business, working part-time or full time, having a plan that clearly outlines your lifestyle goals and sources of income will help business owners prepare for their golden years.”
One-in-four boomers said they would retire immediately if they had enough money compared to only 18% of retiring boomers who own their own business. Half of boomers say they would continue to work part-time or occasionally, compared to 54% of retiring boomer business owners.
In addition, one-in-four boomers say they would continue to work even if they had enough money to retire. Similarly, 28% of retiring boomers who own their own business would also continue to work.
Many entrepreneurs plan to delay retirement: poll
Only 37% of boomers who own businesses plan to be retired at 65
- By: Megan Harman
- February 18, 2009 February 18, 2009
- 12:20