July 25, 2022

Research shows “soon-to-retire” have different plans for life after work

New research from Edward Jones, reported on by Steve Randall in Wealth Professional, finds that many near-retirees don’t plan on a lot of rest and relaxation in retirement.

“Instead of taking it easy, more than half of Canadian retirees and those who are within 10 years of retirement see their post-work years as a ‘new chapter’ in their lives,” Randall writes.

As well, the Edward Jones/Age Wave survey found that 56 per cent of Canadians (aged 45 and over) surveyed see retirement “as a chance to reinvent themselves,” the publication reports. Some of that non-rest and relaxation includes work, the article continues, with 60 per cent of those asked saying they plan “to do some work as part of their ideal scenario.”

They are also expecting a long retirement – Wealth Professional reports the study found those polled expected around 27 years of retirement, and that they may live to age 100.

The article contrasts these retirement dreams with some less dreamy retirement realities. On average, the survey found, folks started saving for retirement at age 37 on average, with most wishing “they had started nine years earlier,” the article tells us.

“For those within 10 years of retirement, 58 per cent are contributing to an account but only 30 per cent have a thorough financial plan,” the piece continues.

“Those who retired in the last two years fear outliving their savings and among those three-14 years into retirement, 55 per cent have taken action to shore up their finances such as starting a part-time job or downsizing their home,” reports Wealth Professional.

Interestingly, only nine per cent of those surveyed think retirement should start at a certain age, the article notes. For 21 per cent of those asked, retirement should coincide with “financial independence,” the article adds.

The article concludes by identifying “the four pillars of retirement” as health, family, purpose and finances.

This is interesting research, for sure. The takeaway seems to be that while most of us are aware of what we want to do when we aren’t working as much, fewer have focused on the “finance” pillar, which plays a critical “enabler” role for the other pillars.

Way back when this writer was a newly-minted pension plan communications guy, we were taught that the three pillars of retirement where government retirement benefits, personal savings, and your workplace pension plan.

That three-legged stool isn’t as common a concept as it used to be. These days, the majority of Canadians don’t have a workplace pension plan. If you’re in that boat, don’t fret – you have the ability to create a do-it-yourself retirement program via the Saskatchewan Pension Plan. SPP can be your personal pension plan, or can be offered to your employees. You provide the contributions, and SPP grows them until it’s time to take up deep sea fishing, ballroom dancing, or what-have-you. Check them out today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Written by Martin Biefer

Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.

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