Average Canadian expects to retire at age 68
Sixty-five may no longer be the magic number for Canadian retirees. According to Sun Life Financial’s 2011 Canadian Unretirement Index, the average Canadian expects to retire at age 68, three years later than respondents reported in the same study a year ago.
The Sun Life study found that the global economic downturn had the most significant impact on those who earn less than $50,000 per year. “They’re less confident about how prepared for retirement, and they expect to retire later – at age 70 on average – as a result,” it said. Impending retirees who earn more than $100,000 are still looking to retire at age 65.
The reasons for working beyond age 65 differ between those at different income levels: Those with incomes over $100,000 are inclined to cite personal fulfillment for continuing to work: 71% say they’ll work past age 65 to stay mentally active, and 60% say they’ll keep working because they enjoy their job or career. Many of those making less than $50,000 per year (68%) say a main reason for working past age 65 is to earn enough money to pay for basic living expenses.
Those currently closer to typical retirement age expect to retire later, as respondents in the 60 – 65 age group expect to leave the workforce at the age of 72. Meanwhile, workers in their 30s and 40s say they expect to retire at 67.
The survey also found that gender plays a role in retirement views, namely:
- While just over half (55%) of all men and women expect to be working to some extent past age 65, more men than women expect to be working full time (24% of men vs. 17% of women).
- Timing for retirement is also different, with men expecting to work almost two years longer until they retire (close to age 69 for men vs. approximately age 67 for women).
- The reasons for expecting to work past 65 vary by gender. More men than women say they will be working because they want to work (44% for men vs. 34% for women), while women are more likely to anticipate they will need to work (67% for women vs. 57% for men)
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