More than two-thirds of Canadian adults plan to work during retirement, according to a recent Scotiabank survey conducted by Harris/Decima.

In the poll of more than 1,000 adults, conducted in October, 731 respondents said they expect to retire. Of that group, 69% plan to work during retirement, either to remain mentally and socially active, or out of financial necessity.

“Being mentally and socially active is important at any age, and we are happy to see that these are the main reasons Canadians continue to work after they retire,” said Gillian Riley, senior vice-president and head of retail payments, deposits and lending at Scotiabank.

Overall, 34% of Canadians expect that they will need to work in retirement for extra income. Residents of Ontario are particularly worried about having enough money, with 44% planning to work during their golden years out of financial necessity.

Those living in the Prairies, meanwhile, are more confident about having enough money, with just 30% expecting to work in retirement out of financial necessity.

Of those surveyed, 56% think they will need less than $1 million to fund their retirement, half of whom believe they will need less than $300,000. More than one-quarter of Canadians think they will need between one and two million dollars and 16% believe they will need two million dollars or more to fund their ideal retirement.

Quebecers believe they’ll need less than the rest of Canadians. Seventy per cent of Quebec residents think they’ll need less than $1 million, and only 9% believe they’ll need $2 million or more.

Residents of Alberta and British Columbia expect to spend more than the national average. Nearly two-thirds of Albertans say they’ll need $1 million or more, and 33% of say they’ll need $2 million or more. In B.C., where the cost of living tends to be higher than other regions of Canada, only 45% of residents think that less than $1 million would be sufficient to fund their retirement.

“While there’s no magic number that Canadians should be aiming for when saving for retirement, it’s important that Canadians are realistic about how they plan to spend their retirement and how much it will cost,” said Riley. “Whether it be $250,000 or $1,000,000, it can be daunting to think about needing such a large sum of money, so it is equally important for Canadians to consider how much they can afford to put away for retirement and understand what that amount will mean for them down the road.”

More than three-quarters of those expecting to retire are currently putting money away for their future and they have been doing so for an average of 15 years. Half of Canadians who plan to retire report saving less than $20,000 over the past five years.

Residents of Quebec are less prepared financially, with just 69% currently putting money away for their future, while B.C. residents are more likely to be saving, at 84%.

“We all know that it’s important to invest for our future, but with so many demands on our time and money it can be easy to put off saving for a goal that often seems far away,” commented Riley.

While Canadians expect the bulk of money for retirement to come from RRSP contributions and savings, many expect that their retirement will also be funded by money from the government, their work pension or inheritance. A small number of Canadians expect to have retirement money come from the lottery or their kids.

Travelling is a top priority for Canadians in retirement, along with spending time with family and friends, reading and exercising. Other retirement plans include taking up a hobby and going back to school.

IE