A new CIBC poll of Canadians aged 50 to 59 showed that while retirement is just around the corner for many, they have come up short on their savings goals and plan to supplement their income by working in retirement.
On average, Canadians in their 50s plan to retire at age 63, but 53% said they would keep working in retirement, with most planning to work part-time.
Of those polled, 61% said they had fallen short of the savings they expected to have in their 50s.
Christina Kramer, executive vice-president of retail distribution and channel strategy for CIBC, said, “The retirement landscape is shifting as the baby boomers reach traditional retirement age with a smaller nest egg than they expected to have.
“Many Canadians are now planning to draw on multiple sources of income including employment to fund their retirement.”
Many boomers in the survey felt they had come up short of what they expected to have saved by this stage in their life, with 45% having saved less than $100,000.
The survey showed that Canadians in their 50s don’t plan to keep working at their current job when they retire, but are looking to find a balance between staying active, earning income and having time for themselves.
Within the 53% of Canadians in their 50s planning to work in retirement, part-time work was by far the most popular option (37%).
Twenty-nine percent of respondents were not sure if they would work once they retire and 14% said they would not work at all once they retire.
While the income earned from working in retirement can add to savings plans, only one-third (33%) said they would work just for the money. Two-thirds (67%) either saw working as a way to stay socially active or said they find work enjoyable and want to stay involved in the workforce.
