Boomers don’t always have much lead time in advance of their retirement date.
In fact, one-in-five (20%) only know one month in advance that they’re going to retire. And 42% have less than six months notice before they retire, says the third annual RBC Retirement Myths and Realities Poll.
“Most Canadians assume they will decide when to retire, but what if that isn’t the case?” asks Amalia Costa, head, retirement strategies, RBC. “There are enough uncertainties in life, knowing what to expect in retirement doesn’t have to be one of them.”
The poll found 85% pre-retired boomers with financial assets of $100,000 or more believe they will have the choice of when to retire. However, only 62% of those boomers actually did have a choice when the time came.
Being healthy was cited as the main reason for the timing of their retirement, ahead of having enough money (34%) or being unhappy at work (25%).
“The surprising number of people facing unexpected retirement highlights the critical importance of starting lifestyle and financial planning early,” says Roger Mannell, director of the RBC Retirement Research Centre at the University of Waterloo. “Many may be thinking of retirement as a vacation without yet having planned for the health, lifestyle, and financial considerations of the next 20 to 30 years of their retired life.”
Although important, vacations are only part of the mix, he adds. “It’s important to plan for key aspects of your day-to-day living.”