More than one-third of Canadians plan to work after they retire out of
Half of Canadians believe they will need to save less than a million
dollars for retirement
TORONTO, Jan. 4 /CNW/ - Of those Canadians who plan to retire, more than
two-thirds (69 per cent) plan to work during retirement, primarily to
remain mentally (72 per cent) and socially (57 per cent) active,
according to a recent Scotiabank study conducted by Harris/Decima
assessing Canadians' attitudes toward retirement and investing.
However, more than a third of Canadians (38 per cent) expect to work
after they officially retire out of financial necessity.
"Being mentally and socially active is important at any age, and we are
happy to see that these are the main reasons Canadians continue to work
after they retire," said Gillian Riley, Senior Vice-President & Head,
Retail Payments, Deposits and Lending, Scotiabank. "For the number of
Canadians who feel they will not be financially prepared to retire, at
Scotiabank we understand that planning for retirement can often be
overwhelming and we want to help Canadians invest for their future so
they can achieve their ideal retirement."
The study found that 56 per cent of Canadians think they will need less
than one million dollars to fund their retirement, half of whom believe
they will need less than $300,000. More than one-quarter of Canadians
(28 per cent) think they will need between one and two million dollars
and 16 per cent believe they will need two million dollars or more to
fund their ideal retirement.
"While there's no magic number that Canadians should be aiming for when
saving for retirement, it's important that Canadians are realistic
about how they plan to spend their retirement and how much it will
cost," said Ms. Riley. "Whether it be $250,000 or $1,000,000, it can be
daunting to think about needing such a large sum of money, so it is
equally important for Canadians to consider how much they can afford to
put away for retirement and understand what that amount will mean for
them down the road."
When it comes to how they plan to spend their retirement, the majority
of Canadians plan to travel (86 per cent), spend time with family and
friends (72 per cent), read (61 per cent) and exercise (60 per cent).
Other retirement plans include taking up a hobby (50 per cent) and
going back to school (24 per cent).
As for saving for retirement, three-quarters (78 per cent) of those
expecting to retire are currently putting money away for their future
and they have been doing so for an average of 15 years. Half of
Canadians (55 per cent) who plan to retire report saving less than
$20,000 over the past five years.
"We all know that it's important to invest for our future, but with so
many demands on our time and money it can be easy to put off saving for
a goal that often seems far away," commented Ms. Riley. "At Scotiabank,
we work with our customers to help make their long-term goals more
tangible so they can take action and let the saving begin."
While the bulk of money for retirement will come from RRSP contributions
and savings (78 per cent and 68 per cent respectively), many Canadians
indicated their retirement would also be funded by money from the
government (63 per cent), their work pension (55 per cent) or
inheritance (27 per cent). A small number of Canadians expect to have
retirement money come from the lottery (five per cent) or their kids
(four per cent).
For more information about investing for your future, visit www.letthesavingbegin.com.
Let the Saving Begin is a Scotiabank program designed to inspire and
empower Canadians to get on track with their saving, investing and
Built on three simple principles, Let the Saving Begin encourages
Save automatically, because it works;
Invest for your future, because no one else will; and
Borrow to get ahead, not fall behind.
About the survey
A total of 1,011 completed surveys were collected from a random sample
of Harris/Decima's panel members across Canada, of which 731 expect to
retire. The study was conducted from October 14th, 2010 to October
This was a standard panel survey among a random sample of
Harris/Decima's Canadian panel members. In a fashion similar to a
telephone study, email addresses from their panel were pulled at
random, according to population and gender specifications, in order to
make the study representative of the Canadian population by region and
gender. When contacted to solicit participation, participants had no
prior knowledge of the subject matter of the study. Harris/Decima
controls access to the study through passwords to ensure that
respondents can participate only once. Subsequent to completion of the
study, the data was weighted by region, age, and gender.
Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With more than 70,000 employees,
Scotiabank Group and its affiliates serve some 18.6 million customers
in more than 50 countries around the world. Scotiabank offers a broad
range of products and services including personal, commercial,
corporate and investment banking. With assets above $526 billion (as at
October 31, 2010), Scotiabank trades on the Toronto (BNS) and New York
Exchanges (BNS). For more information please visit www.scotiabank.com.
For further information:
Robyn Harper, Scotiabank Public Affairs, 416-933-1093, firstname.lastname@example.org.