Study: Majority of Canadians to work past 65 amid uncertainty
In the midst of Canadian Prime Minister Stephen Harper and the Conservatives hinting at changes to the retirement pension plan, a new poll suggests that a majority of Canadians plan to work past the age of 65.
Canadian Human Resources Minister Diane Finley said in a speech
Tuesday in Toronto that the government’s changes to the pension system will be explained in the upcoming federal budget, which is expected in March.
Talks of changes to the Canadian Pension Plan (CPP) were sparked when Conservative Prime Minister Stephen Harper hinted
at possible changes to the public retirement system during a speech in Davos at the World Economic Forum.
This comes as a new poll suggests that a majority of Canadians expect to work past the age of 66 due to a variety of reasons, such as longevity, an increase in debt, the rising costs of healthcare and the lack of money for retirement.
The new Sun Life Financial study
shows that 70 percent do not expect to be fully retired come 66. A little more than one-third said they expect to work part-time in their winter years, while 20 percent believe they will work full-time.
“Canadian retirement expectations are changing with many planning to work longer and almost half of Canadians looking to phase in their retirement,” said Kevin Dougherty, President of Sun Life Financial Canada.
Among the respondents who say they plan to work past the age of 65, 61 percent said they will work because they need to and 39 percent said they will work because they want to. The survey also found that Canadians plan to phase their retirement at different ages.
When asked what age they should have started saving for retirement, the average response was the age of 24.
According to numbers from Statistics Canada
, the average life expectancy is at 80.9. The stats agency projects
that in the next two decades, approximately 17,000 Canadians could hit the century mark.
The online survey was conducted by Ipsos Reid between Nov. 29 and Dec. 12 with 3,701 employed Canadians between the ages of 30 and 65. It contains a margin of error of +/- 1.6 percentage points.