Despite the fact that many Canadians say they are putting money aside, the majority are concerned they have not saved enough to sustain them through retirement, according to findings from a Conference Board of Canada report.
- 60% feel they have not saved enough to comfortably retire.
- Almost 60% of those on the cusp of retirement (55-64 years of age), and a little over 40% of those aged 65+ report that they have not put enough money aside.
Read: Most Canadians can’t retire as planned
According to the survey, the average planned age of retirement was 63.2 years of age. However, over a third of respondents said they were uncertain when they would be able to exit the labour force. Of these, women (83.5%) were more uncertain than men (69.8%) regarding their planned future retirement. Up to 19% of respondents say they will never retire.
Read: Many Canadians don’t have a workplace retirement plan
Concern over inadequate retirement savings has already led a good number of Canadians to delay retirement. More than one in five respondents have decided to retire later than their initial plan five years ago. Furthermore, a full 45.6% of respondents say they plan to continue to work part-time or on a contract basis after their official retirement, and the percentage increases with age. About 51% of those aged 45-64, and 60% of those aged 65+ say they will continue working past their official retirement date.
Respondents who report excellent financial literacy skills are anywhere from four to seven times more likely to be confident that they will be able to retire when they want, understand the income they will receive from public pension plans, and know how much they need to save.
The survey also examined how retirees are faring. Sixty percent say their current incomes are sufficient to meet their needs, with the remaining retirees struggling. More than half of current retirees surveyed rely exclusively or to a large degree on public pension plans.