Over two-thirds of working Canadian baby boomers have no plans to downsize their lifestyles in retirement according to new survey released today by Fidelity Investments Canada ULC.

The majority of working Canadian baby boomers plan to maintain or even increase their standard of living in retirement.

“Fidelity’s research shows that many baby boomers have big plans for retirement including retiring early and leading very active lives in retirement,” says Peter Drake, vp, economic and retirement research, Fidelity Investments Canada. “However, as the median retirement age drops and life expectancy increases, some boomers could have retirements as long as their working lives. Unfortunately, not all boomers are planning and saving for the longer and more active retirement they want.”

The third annual Fidelity Canadian Retirement Survey reveals that 64% of Canadian baby boomers are planning to maintain their current standard of living once they retire. An additional 6% are planning to increase their standard of living, while only 22% of boomers plan on downsizing in retirement. Conversely, 47% of Canadian retirees surveyed indicated that they continued to live like they did before retirement, while an additional 42% downsized their standard of living after retiring

While many boomers have big plans for retirement, not all will be able to afford the life they want in retirement. The Fidelity Retirement Index, released in October 2007, shows that boomers are only on track to replace 55% of their pre-retirement income once they retire. This means that some boomer households will be taking a 45% paycut in retirement which could force them to reconsider their retirement goals.

Today’s survey also shows that only one in five baby boomers (23%) has a retirement income plan that clearly tells them where their money will be coming from in retirement and where it might be going.

While many of those surveyed want to maintain or even increase their standard of living in retirement, they realize that it can come at a cost. The majority of baby boomers (62%) believe they will be spending less in retirement than they currently are which is consistent with spending habits reported by retired Canadians.

When examining where they believe their money might go, 45% of boomers believe they will spend less on housing costs for their primary residence in retirement. However, retirees report that the opposite is true with 69% of retirees saying that they have actually spent the same or even more on housing costs in retirement. The vast majority of boomers (84%) are anticipating that their health care costs will remain about the same or rise in retirement which is consistent with retirees’ current spending habits. As well, 66% of boomers expect to spend the same or more on vacations, vacation properties and hobbies in retirement compared to 56% of retirees who have done so in retirement.

The 2007-2008 Retirement Survey was conducted by The Strategic Counsel. The survey was conducted on-line from Nov. 27 to Dec. 10, 2007 among a representative sample of 1,000 adult Canadians 45 years and older.