But aspirations could be derailed by passive financial planning
MONTREAL, QC, June 9 /CNW/ - Working Quebeckers 40 years of age and older hope their lifestyle will be more active in retirement than it is now - likely including travel and part time work -Investors Group research reveals.
The survey, which focused on the retirement attitudes of Quebec baby boomers, showed that one-third (34 per cent) of working boomers felt they would be more active in retirement while 27 per cent said that they plan to travel more extensively while retired. One-in-four (25 per cent) said part-time work would likely be part of their retired life.
Quebec baby boomers also appear to realize that a more active retirement often comes with a price tag. Approximately half (53 per cent) of non-retired survey respondents said they believe they will need the same amount or more income than what they are making now to support their desired retirement lifestyle.
"Expectations for an active lifestyle and extensive travel are positive goals but to realize those dreams you need a solid approach to retirement planning," said Claude Paquin, Senior Vice-President of Investors Group in Quebec. "That plan needs to include clear lifestyle expectations and a financial plan to match."
Relying on government pensions
One-in-three (32 per cent) respondents indicated government pensions will be their primary source of income during retirement. That is more than the number who said employer pensions will be their primary retirement income source (29 per cent), those relying on investment income (22 per cent) and significantly more than those who will rely on part-time work to fund their retirement (7 per cent).
In addition, most Quebec 40 years of age and older are worried about the future of government pensions. A majority (61 per cent) say they are concerned or very concerned about the amount of income they will receive from government during retirement.
"Relying too heavily on government pensions is not likely to be enough to support the kind of retirement most Quebeckers envision," said Paquin. "For many Quebeckers creating a realistic personal investment strategy is the key to taking control of their retirement lifestyle."
Concern about issues that could have a negative impact on retirement goals appears to be lower among Quebeckers 40 years of age and older than it is elsewhere. The number worried about saving enough for retirement (64 per cent), paying off debt before retirement (39 per cent), and the impact of the economy on pension income (62 per cent) was smaller in Quebec than outside of the province.
Ready or Not
While most Quebec boomers agree about the need to plan for retirement, fewer are actually developing those plans. 86 per cent of working residents agree or strongly agree that a financial plan is important but only 57 per cent either have or are developing a financial plan for retirement.
According to the Investors Group survey, one out of three retired Quebeckers (32 per cent) say they were not as ready for retirement as they should have been and 38 per cent of boomers not yet retired who say they don't feel they are properly prepared.
"Ready or not, retirement is coming," Paquin said. "There is a direct relationship between taking control of your future and financial planning. More Quebeckers need to make that connection."
About the Survey Methodology: These data were collected through an online panel survey between May 4th and May 9th. In total, 1,500 surveys were completed, with 1,000 of the surveys being among residents of Quebec. Respondents were targeted and chosen based on their age, and place of residence in Quebec. Online panel surveys are non-probability samples and thus margin of error cannot be calculated. However, stratified sampling and weighting was done to bring the sample in line with Census profile.
Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of over 4,600 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and other financial services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with over $118 billion in total assets under management.
SOURCE Investors Group Inc.
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