While retirement is typically considered to be a period in life people use to devote more time to travel and recreational activities, a new poll finds that a considerable number of Canadians plan on continuing to work in their retirement years.
According to a study conducted by the Canadian Imperial Bank of Commerce, nearly 70 per cent of those polled said they will still work once they leave their primary jobs behind. When probed about how much time they plan to devote to work, 45 per cent said they will work part-time and 8 per cent said they will work at least 40 hours per week.
Other common responses were doing some occasional consulting work and starting a new business. Just 1 per cent said they will spend their retirement travelling.
"Our CIBC Poll shows that Canadians don't view retirement as the end of their working lives," said Christina Kramer, executive vice president of retail distribution and channel strategy for CIBC.
However Canadians plan on spending their retirement years, Kramer said it's important for them to prepare themselves financially so they can afford to live comfortably and achieve the goals they've established. For instance, speaking with a financial advisor is highly recommended as these professionals can help determine what kind of income they would need to sustain themselves. An advisor will also be of some assistance when it comes to planning for the unexpected and can suggest certain products that will give people more financial security, such as an annuity or life insurance policy.
The percentage of people who expected to keep working varied significantly depending on age. The poll found that the youngest group of respondents were the most likely to work in retirement, as 80 per cent of people between the ages of 18 and 24 said as much. The least likely were 25 to 34-year-olds at 65 per cent. The group was also the least likely to say they would retire due to health reasons. Among Canadians who have already retired, nearly one in five said health complications forced their hands.
When looking at Canadians' likelihood of working in retirement by region, 80 per cent of British Columbians said they would seek alternative employment, followed by Alberta at 78 per cent, and Manitoba/Saskatchewan at 73 per cent. Residents of Ontario, Quebec and the Atlantic Canada region were slightly less likely to continue working in retirement.