Canadians delaying retirement amid surging inflation, poll finds

Click to play video: 'Survey suggests inflation among reasons why more older Canadians are delaying retirement'
Survey suggests inflation among reasons why more older Canadians are delaying retirement
There's no escaping the impacts of inflation. The current soaring cost of living can be seen at gas stations and at the grocery store. And now a new survey has found that more Canadians 55 years and older are considering delaying their plans to retire. Aaron McArthur reports. – Jun 17, 2022

A new survey suggests a growing number of older Canadians are rethinking their retirement plans, amid deteriorating economic conditions.

More than half (54 per cent) of those surveyed aged 55 and up said they had or were planning to delay their retirement due to mounting inflation and cost of living increases this year alone.

The poll was conducted between June 9 and June 12 by the Angus Reid Institute for financial advisors Advisorsavvy and debt consolidation firm Bromwich and Smith.

“It’s a combination of factors, coming out of the pandemic, the war that’s going on and inflation. People are feeling inflation, whether its at the pumps, whether its in the grocery store or whether its just the general cost of housing,” Advisorsavvy founder Sol Amos told Global News.

Story continues below advertisement

“A lot of these factors wouldn’t have been considered when people were planning their retirement 10 or 15 years ago.”

Click to play video: 'Rising inflation leaving many to rethink their retirement plans'
Rising inflation leaving many to rethink their retirement plans

Along with the rising cost of living, the poll found several other major factors delaying Canadians’ retirement plans.

More than six in ten respondents said they had or would delay retirement because they didn’t have enough savings or investments, while four in ten said were doing the same because of too much debt.

More than a quarter of respondents reported putting retirement on hold because they had children who needed financial support.

The survey also found significant financial anxiety among retirement-age Canadians on numerous fronts.

Story continues below advertisement

More than seven in 10 reported fears they would run out of money after retirement, while more than six in 10 said they feared they’d never be able to retire.

Click to play video: 'Rising interest rates, debt spur Canadian homebuyer’s remorse'
Rising interest rates, debt spur Canadian homebuyer’s remorse

Just under a quarter of respondents said they feared they’d have to go back to work after retiring because of the rising cost of living.

“For those that are 55-plus that are concerned about the delay or worried they won’t have enough money, there’s really a couple of things they can look at,” Amos said.

“One is looking at the time horizon they originally would have predicted for their retirement and saying ‘can I delay that five or eight years?'”

Story continues below advertisement

People with retirement concerns can review their spending habits and see if there are things they can forego in the short term, he suggested.

With rising interest rates, people carrying debt may want to look at eliminating it as quickly as possible, he added.

Amos also suggested Canadians struggling with retirement anxiety consider talking to a money management professional, such as a financial planner, investment advisor or licensed insolvency trustee.

“Revisit those numbers and see how long you might need to push it out,” he said.

The Angus Reid Institute survey was conducted between June 9 and June 12, 2022, among an online representative sample of 1,519 Canadians who are members of the Angus Reid Forum. For comparison purposes, the sample plan would carry a margin of error of +/- 2.5 percentage points, 19 times out of 20.

Sponsored content