TORONTO – Majority of Canada’s baby boomers who have the option to retire early would rather keep working so they can maintain a good lifestyle, according to a CIBC poll.
57 per cent of people who were polled, between the ages 50-59, said they’d rather “work longer and live better” in retirement, and would not give up their current lifestyle.
The poll also reveals that 24 per cent of Canadians in their 50s are planning to carry debt into retirement with no immediate plans to pay it off.
This builds on previously released CIBC research that shows Canadians in their 50s have fallen short of their retirement savings goals, with almost half (45 per cent) having saved less than $100,000 over their lifetime for retirement.
Geoff Dillon, senior director of Retail and Business Banking at CIBC, says the poll highlights the importance of planning ahead as for many people and debt-free retirement is just not the norm anymore.
“We know that there is a bit of challenge here with reaching savings goals and yet when we look at predictions for lifestyle we see people indicating, I’ll keep working a bit, but I plan to live well in retirement,” said Dillon.
With more baby boomers staying at work, the trickle-down effect for new grads entering the work force may signal challenging times ahead. However not everyone is worried.
Tyler Epp, director of advocacy at the College Student Alliance of Ontario says current post-grad employment numbers are looking up for students.
He also says that more pathways have been created for students to go into innovation and entrepreneurship programs which rely less on a traditional employment formula.
“The way the economy is going students are just as likely now to go out and start their own businesses following graduation,” said Epp. “[They] create new jobs for themselves rather than moving into the classic ‘school-work-retire’ formula.”
Dillon says regardless of current bank balances, saving for retirement can start at any age, but it should start soon.
“For some people it is time to sit down and have a bit of a reality check around what does that retirement income look like today and what it’s going to take to improve it.”