The current habits, lifestyles and attitudes among baby boomers have put the traditional “all play and no work” retirement mentality on the verge of extinction, according to study released today by Desjardins Financial Security.

One-tenth of today’s retirees continue to work, and over half (54%) of workers aged 40 and older are planning a gradual retirement.

The study, which surveyed Canadians from across the country, revealed the effects of starting work and family life later than previous generations.

Canadians hoping to retire are coming to terms with the fact that “early” retirement is not in the cards exactly in the way they had originally anticipated. When asked about their ideal retirement age, university-educated workers are more likely to envision working past age 65 — at least five years longer than the “ideal” retirement age of other actively employed respondents.

“We know that beginning a family later in life is four times as frequent today as a generation earlier. We’re now supporting dependent children into our fifties and sixties, making our “ideal” retirement age somewhat of a moving target,” says Monique Tremblay, senior vp, savings and segregated funds, at DFS. “The effect of this stress on financial resources is aggravated by the minimal budgeting and financial planning during working life.”

Tremblay goes on to say that the Desjardins survey shows that this “magical thinking” among Canadian workers may result in unpleasant surprises in terms of risk management at the time of retirement.

“Canadians say they are willing to save for the future, but 66% of respondents have not even considered how they will use those retirement dollars. If you don’t factor inflation into your future, you could be in for sticker shock when it comes to food, housing and other basic necessities” she adds.

Health is another significant risk factor. More than three quarters of existing Canadian retirees say they are in good, very good or excellent health. While that may be true today, about half are significantly concerned that they may need extended care at home or long term care in a facility as they age. Forty-three per cent of retirees worry that they may not have the savings to pay these expenses, which can be quite significant in some cases.”