One in three don't think they've put enough cash away for retirement, 18 per cent have no plans to ever retire: Statistics Canada
Canadians approaching retirement age don’t think they’ve socked enough cash away for their golden years, according to a new study by Statistics Canada.
About one-third of those aged 45 to 59 feel they haven’t made adequate financial preparations to maintain their standard of living after they leave their job.
Slightly more than six million people were aged 45 to 59 in 2001, according to the census. This figure includes about three-quarters of the baby boom generation, which Statistics Canada defines as those born between 1946 and 1965. In the next decade, as the baby boomers move through their 50s and 60s, more Canadians than ever before will be poised to make the transition to retirement.
One in five don’t plan to retire — ever
About 12 per cent of Canadians in that age bracket did not know when they plan to retire, while 18 per cent said they did not intend to ever retire.
Statistics Canada said the plans and preferences of this age group towards retirement could change a long-established trend of retirement at younger ages. Evidence from its Labour Force Survey shows that since the late 1970s, the average age of retirement in Canada declined from about 65 to 61 years of age.
But for now the average retirement age is holding relatively steady, though the study showed a wide variation in the age at which Canadians plan to retire. About 22 per cent of non-retired people aged 45 to 59 said they plan on retiring before 60 while comparable proportions said they plan on retiring between 60 and 64 (22 per cent) or at 65 (23 per cent.) Only three per cent said they plan on retiring after 65.
Their average planned retirement age is 60.8, similar to the current average age of 61.2, based on the Labour Force Survey.
The reasons for hanging on
The likelihood of not intending to retire was strongly associated with financial characteristics. Individuals with personal incomes of less than $20,000 were almost three times as likely to say they did not intend to retire as individuals with personal incomes of $40,000 or more.
Similarly, intentions to forego retirement were more prevalent among individuals who did not own their home than among those who did.
Immigrants more uncertain about retirement
Uncertainty about retirement was especially prevalent among immigrants who arrived in Canada since the beginning of the 1980s.
Almost half (47 per cent) of non-retired immigrants aged 45 to 59 reported that they did not know when they planned to retire or that they did not intend to retire. As well, 45 per cent of non-retired immigrants expressed concerns about the adequacy of their financial preparations for retirement.
Women more uncertain than men
One-third of women (33 per cent) said their financial preparations were inadequate, compared with 29 per cent of men. Women were also more likely than men to say they expect their retirement income to be inadequate or barely adequate to maintain their standard of living after leaving the labour force.
People who were widowed, separated or divorced were far more likely to feel that their financial preparations were inadequate, compared with those who were married or living in a common-law relationship.
Data for the Statistics Canada study came from the 2002 General Social Survey, which was conducted between February and December 2002. The survey covered about 25,000 people over the age of 45.
About one-third of those aged 45 to 59 feel they haven’t made adequate financial preparations to maintain their standard of living after they leave their job.
Slightly more than six million people were aged 45 to 59 in 2001, according to the census. This figure includes about three-quarters of the baby boom generation, which Statistics Canada defines as those born between 1946 and 1965. In the next decade, as the baby boomers move through their 50s and 60s, more Canadians than ever before will be poised to make the transition to retirement.
One in five don’t plan to retire — ever
About 12 per cent of Canadians in that age bracket did not know when they plan to retire, while 18 per cent said they did not intend to ever retire.
Statistics Canada said the plans and preferences of this age group towards retirement could change a long-established trend of retirement at younger ages. Evidence from its Labour Force Survey shows that since the late 1970s, the average age of retirement in Canada declined from about 65 to 61 years of age.
But for now the average retirement age is holding relatively steady, though the study showed a wide variation in the age at which Canadians plan to retire. About 22 per cent of non-retired people aged 45 to 59 said they plan on retiring before 60 while comparable proportions said they plan on retiring between 60 and 64 (22 per cent) or at 65 (23 per cent.) Only three per cent said they plan on retiring after 65.
Their average planned retirement age is 60.8, similar to the current average age of 61.2, based on the Labour Force Survey.
The reasons for hanging on
The likelihood of not intending to retire was strongly associated with financial characteristics. Individuals with personal incomes of less than $20,000 were almost three times as likely to say they did not intend to retire as individuals with personal incomes of $40,000 or more.
Similarly, intentions to forego retirement were more prevalent among individuals who did not own their home than among those who did.
Immigrants more uncertain about retirement
Uncertainty about retirement was especially prevalent among immigrants who arrived in Canada since the beginning of the 1980s.
Almost half (47 per cent) of non-retired immigrants aged 45 to 59 reported that they did not know when they planned to retire or that they did not intend to retire. As well, 45 per cent of non-retired immigrants expressed concerns about the adequacy of their financial preparations for retirement.
Women more uncertain than men
One-third of women (33 per cent) said their financial preparations were inadequate, compared with 29 per cent of men. Women were also more likely than men to say they expect their retirement income to be inadequate or barely adequate to maintain their standard of living after leaving the labour force.
People who were widowed, separated or divorced were far more likely to feel that their financial preparations were inadequate, compared with those who were married or living in a common-law relationship.
Data for the Statistics Canada study came from the 2002 General Social Survey, which was conducted between February and December 2002. The survey covered about 25,000 people over the age of 45.
