As mandatory retirement comes to an end in Ontario tomorrow, more boomers can now continue to work into their traditional retirement years as planned.
According to a BMO Financial Group study conducted by Ipsos Reid, three in four pre-retirees in Ontario (73%) expect to work in retirement. In addition, 91% of Ontario boomers stated that they are willing to continue to work if they’re not able to save enough to fund their retirement.
“Boomers across the country have told us loud and clear that retirement is changing. It’s no longer triggered by age, it’s a transition between full-time work and active retirement,” said Kris Vikmanis, head of retirement market, BMO Financial Group. “In fact, boomers agree that retirement should be redefined because it doesn’t mean today what it meant years ago.
“Canadians are healthier and are living longer and many want to continue to work as a result. To boomers, working longer is not just about earning money, it’s about staying active,” added Vikmanis.
When Ontario boomers were asked why they expect to work in retirement, the top three answers were:
- To be mentally active – 71%;
- To earn money – 69%; and
- To keep in touch with people – 63%.
Ideally, pre-retirees and retirees would prefer not to work. When asked ideally how they would like to spend time in retirement, both groups think alike – preferring not to work, regardless of their current retirement status, age, gender and level of wealth. They would rather travel, engage in hobbies, spend time with family and friends and do volunteer work.
In reality, 72% of Ontario boomers don’t feel they are on track with saving for their retirement or don’t know if they’re on track, but they are willing to do what it takes to get there. As a result, seven in 10 boomers in Ontario would give something up and 91% would also work longer if they couldn’t save enough for retirement.
“Boomers are quite realistic when it comes to retirement. They realize that they may have to work longer or give up something if they don’t have the money they need to fund the next phase of their lives,” said Vikmanis.