Two-thirds of Canadian investors who have not yet retired are not stressed out by retirement investing, according to findings of the 2005 TD Waterhouse RSP Poll.

Among the one-third who find the process somewhat, very or extremely stressful, the main reasons for stress given are uncertainty (33%) and lack of money (16%).

One of the reasons behind the lack of stress may be that one-third of Canadian investors who have not yet retired plan to be working either part-time (25%) or full-time (8%) past the mandatory retirement age. Among those who see their working lives stretching out indefinitely, almost three-quarters plan to do so out of choice rather than necessity.

“The findings are further evidence of a major shift in how Canadians think about retirement,” says Patricia Lovett-Reid, senior vp, TD Waterhouse Canada Inc. “It would appear that an aging population base, looming labour shortages, the decline in defined benefit pension plans and lower expectations of income from retirement investments have created a ‘perfect storm’ that is blowing away long-held notions of life after 65.”

The more pragmatic approach to retirement is further reflected in investor expectations for rates of return in 2005. According to the poll, the median expectation for all investors is a 5% return. Stock investors are the most optimistic, with a median expectation of 10%.

“TD Economists project 3% to 6% returns in 2005 from Canadian and US equities,” says Lovett-Reid.

Investors also seem to be leaning towards investments with lower risk. Thirty-three per cent of poll respondents say they will be investing in savings in a registered plan, while 22% will choose term GICs.

Stress levels about retirement planning appear to be correlated to gender. While 44% of women report experiencing some degree of stress when investing for retirement, only 27% of men said the same. Women are more likely to agree that a lack of time is a reason for their stress. Women are also more likely than men to be concerned about healthcare, not having enough money to last and not being able to maintain their current standard of living in their retirement years.

When it comes to expectations about increases in their personal cost of living, Canadians are in agreement with the Bank of Canada. More than half of poll respondents estimated the increase next year to be 1% to 3%, which is precisely the same target range as that set by the central bank.

TD’s fifth consecutive annual poll was conducted by Toronto-based research firm TNS Canadian Facts, between October 19th and November 4, 2004. A total of 1,003 telephone interviews were conducted among a nationally representative random sample of Canadian investors aged 18 to 69; of whom 78% currently have an RSP. The survey results are accurate within plus or minus 3.1 percentage points, 19 times out of 20.