Pre-retirees have a hard time shifting their mindsets from receiving a single paycheque to getting from a variety of sources once they stop working, finds a Fidelity Retirement survey.

Many also overestimate how much work they’ll do after officially retiring, as well as the amounts they’ll be withdrawing from their registered and non-registered investments, the survey indicates.

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More than 50% of pre-retirees say they’ll continue getting a paycheque from a full or part-time job after they retire, but 23% of retirees surveyed actually do. And 51% of retirees say they left the workforce earlier than they had expected.

The pre-retirees also overestimate how much money they’ll receive from inheritances down the road. While nearly 30% expect to receive such a windfall, less than 20% of retirees reported getting one.

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The pre-retirees also underestimate the value of less obvious sources of income, that don’t come from a pension, government benefits or savings. The survey notes the value of Canadian home equity has nearly doubled in the last 10 years, from $1.2 trillion at the end of 2002 to $2.3 trillion in 2012.  A third of pre-retirees surveyed say they’re likely to use their homes for future income.

The effect of inflation on savings is a concern for 62% of people who have yet to retire. The possibility that healthcare expenses could eat up savings worries 54%, while longevity, asset allocation and overdrawing savings worry about 47% of those surveyed.

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