3 misconceptions about retirement in Canada

A new news found that a existence of retirement in Canada isn’t utterly what people design it to be.

The online check of 1,800 people conducted by Ipsos on interest of RBC revealed critical misconceptions surrounding retirement. They embody a timing of that final day on a job and how Canadians indeed spend their days after clocking out.

Respondents were Canadians 55 years and older, some in their pre-retirement years and others who have already retired. An critical premonition is that all pronounced they have retirement resources of $100,000 or more.

“Our expectations for retirement aren’t always met,” pronounced Rick Lowes, clamp boss of retirement devise of RBC.

Here are a 3 common misconceptions highlighted in a report.

1. Most people don’t know their retirement date distant in advance

So many for counting down a days to retirement months in advance. Among a consult respondents, 55 per cent approaching to know their retirement date a year or some-more in advance. But only 39 per cent had that many notice.

In fact, 16 per cent had no allege notice of their retirement. The formula sundry from range to province: Respondents in Atlantic Canada were a many approaching to contend they had no notice before their retirement day arrived. 

Marissa Lennox, arch process officer for CARP, a Canadian Association of Retired Persons, pronounced health is a No. 1 reason people finish adult timid progressing than expected.

“People in bad health mostly overreach how prolonged they can work,” she said. “The second reason is patrimonial issues. Someone might select to leave a workforce to caring for a parent, associate or grandchild.”

Mandatory retirement ages are no longer legal, though things like lay-offs, restructuring, and excess brought about by record also pull people into retirement with tiny notice, Lennox said.

2. Only a minority turn ‘snowbirds’

Retiring to sunnier climes is a common Canadian dream. Close to a third of check respondents pronounced they design to be “snowbirds” who spend a winter months in warmer locations such as Florida, Arizona or Mexico.

But of those respondents who had indeed retired, only 18 per cent indeed fly south for winter. That stat doesn’t warn Lennox. 

“The fact is while it’s good to fantasize about timid in a tiny beach city in bliss somewhere, or spending a improved half of a lives travelling a world, it’s only not picturesque for most,” she said.

The consult found that those from Alberta were a many approaching to be snowbirds during 32 per cent, followed by retirees from Saskatchewan and Manitoba during 23 per cent.

3. Few people work part-time after retirement

Many Canadians devise to have some arrange of second act in retirement, operative possibly full or part-time once their categorical career has come to an end. In fact, they might be counting on it to compensate a bills, pronounced Lowes.

Among a poll’s respondents who hadn’t nonetheless retired, 50 per cent pronounced they approaching to work during slightest part-time though only 11 per cent of retirees polled pronounced they’d found work.

“If we haven’t had early notice of retirement, and we haven’t got skeleton in place, and we might be relying on work to assistance us grasp a goals, that might not be as accessible as we’d hoped,” he said. Retirees might learn that it’s harder to get a pursuit than expected, or during slightest a kind they’d hoped for that will accommodate a semi-retired lifestyle.

Edmonton retirement Ernie Zelinski, author of How to Retire Happy Wild and Free, said people might learn that a form of work they can get in retirement isn’t worth it.

“If you’ve been creation a pursuit during $120,000 a year and afterwards we remove your pursuit during 55 and afterwards we have to work a pursuit during $15 an hour, is that going to be sufficient? Those factors have to come into outcome too. Would we suffer being a Walmart greeter or anything else that might be accessible to you?”

Lennox said she questioned a report’s anticipating about a tiny portion of operative retirees, given a series of CARP members who contend they counting on income from part-time work.

However, she pronounced one explanation could be that given so many are timid after in life, their ability and enterprise to work once they’ve finally hung adult their hats isn’t what they expected.

“The trend is that people are timid in their 70s and 80s, so the odds of going behind to work after that indicate is many lower,” Lennox said. “We’re meditative of a normal retirement age of 55 or even 65, and that’s only not what’s function today.” 

The commentary are partial of a check that was conducted between Apr 2 and Apr 8, 2019. For this report, a information is drawn from a representation of 1,800 people age 50 or some-more who have retirement resources of $100,000 or more. The formula are deliberate accurate to within +/- 2.6 commission points, 19 times out of 20.

Article source: https://www.cbc.ca/news/business/misconceptions-retirement-in-canada-1.5430889?cmp=rss