Almost half of working Canadians plan to retire before turning 65, even though the mandatory age of retirement has been abolished, according to a Statistics Canada study released Tuesday.
Statscan found that two-thirds of “near-retirees” – working Canadians between the ages of 45 to 59 – anticipate that their retirement incomes will be adequate to maintain their standards of living once they leave their jobs.
An analysis of data gathered in the 2007 general social survey found that 22 per cent of “near-retirees” planned to retire before they hit 60 and 25 per cent before their 65th birthdays.
“Age 65 is still an important reference point for retirement, with 25 per cent of near-retirees planning to leave the workforce at that age. Another 4 per cent plan on retiring at age 66 or older.” Others who were polled were unsure about when they planned to retire.
Statscan researchers Grant Schellenberg and Yuri Ostrovsky found that 71 per cent of 45-to-59-year-olds had sought financial advice from at least one source to pave the way for their eventual retirements.
“After many years of public discussion about Canada’s aging population, the leading edge of the baby boom generation is now on the cusp of retirement,” the Statscan analysts wrote.
“Individuals born in 1946 are turning 62 this year – the average retirement age, according to the labour force survey – and over the coming decade, more Canadians will retire than ever before.”
More than 60 per cent of older working Canadians are “reasonably certain” about when they will retire.
By sector, those who work in public administration are the most likely to take early retirement, with 47.3 per cent planning to leave their jobs before they turn 60, followed by 35.4 per cent of workers employed in health, education and social services.
By occupation, 37.6 per cent of technologists and technicians, 35.5 per cent of professionals and 33.8 per cent of managers plan to clock out before age 60.
Not surprisingly, paid employees were more inclined than the self-employed to have firm retirement plans. Among the self-employed, 47.2 per cent planned to work until age 65 or older.
© Copyright The Globe and Mail, September 8/08