Retirement for most Canadians won’t mean just sitting back and taking it easy, according to a new study by BMO Financial Group, which found that 81% of those surveyed plan on doing some kind of work in their golden years.<\/p>\n
“The top reason was the need for additional income,” said BMO’s Marlena Pospiech.<\/p>\n
“It may reflect the fact that people are realizing that they haven’t saved as aggressively as they should have,” said Pospiech, senior manager, BMO Wealth Planning Group.<\/p>\n
People are living longer, there are fewer employer-sponsored pension plans and many Canadians will be working longer before collecting government pensions, Pospiech said from Toronto.<\/p>\n
And this is starting to get people thinking about their retirement income, she added.<\/p>\n
Beginning in 2023, the federal government will gradually shift the age of eligibility for old age security and guaranteed income supplement payments from 65 to 67.<\/p>\n
Pospiech said past studies indicate that people generally haven’t been maximizing their RRSP contributions.<\/p>\n
This year’s deadline for contributions to Registered Retirement Savings Plan is March 1.<\/p>\n
“So for people who are looking forward to retirement, I think the message has been sent loud and clear that they’ve got to save personally.”<\/p>\n
The online study by market research firm Pollara surveyed 1,000 Canadians 18 years of age and over between Jan. 17 and Jan. 22.<\/p>\n
Besides extra income, respondents also said they would work in retirement to stay sharp and as “enjoyable hobby,” according to the study released Tuesday.<\/p>\n
Two in five Canadians were also likely to start their own business in retirement, the survey said.<\/p>\n
“We see that more often, according to our survey, with that being the case with men,” Pospiech said, noting it’s a new trend to be an entrepreneur in retirement.<\/p>\n
It’s a desire for people to be “their own boss” and it’s a new beginning, she said.<\/p>\n
Almost half of Canadians surveyed said they would use a portion of their retirement savings to fund their business, the survey said.<\/p>\n
That indicates a high degree of optimism and it would indicate that at least some retirees planning to start a business have that “extra cushion” or cash flow if they are going to fund it with their retirement savings, she said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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