A new CIBC (CM: TSX; NYSE) Poll conducted by Harris/Decima reveals 73 per cent of Manitoba and Saskatchewan residents plan to continue working in retirement, including starting their own business, consulting or taking on part-time hours.
Highlights of the poll on how Manitoba and Saskatchewan residents plan to work in retirement include:
- 50 per cent believe they will work part-time
- 22 per cent of Manitoba and Saskatchewan respondents believe they will do occasional consulting in retirement
- 16 per cent of residents from Manitoba and Saskatchewan say they will start a new business in retirement, the highest in the country
- 3 per cent say they will continue working full time in retirement
- Only 2 per cent of Manitoba and Saskatchewan residents plan to spend their retirement travelling
“Our CIBC Poll shows that Manitoba and Saskatchewan residents don’t view retirement as the end of their working lives,” said Christina Kramer, Executive Vice-President, Retail Distribution and Channel Strategy, CIBC. “Whether Manitoba and Saskatchewan respondents choose to continue working because they enjoy their work, or they have determined the need to supplement their retirement income, it is important for residents of Manitoba and Saskatchewan to have a holistic retirement plan including savings and debt management, so they have the financial freedom to decide what they do in retirement.”
Past research from CIBC at the start of the year revealed that retirement planning ranked among the top three financial priorities for Canadians in 2011, including boomers who counted it as their top priority.
“Retirement planning is not only about saving money every month, it’s also about planning ahead to understand the type of retirement you want to have and the level of retirement income you need,” added Ms. Kramer. “Taking an integrated view of your savings, debt-management and retirement income plan is something a financial advisor can help you with to ensure your goals add-up.”
Interestingly, the survey also reveals that nationally, Canadians across all age groups plan to continue some form of work in retirement:
- 80 per cent of Canadians aged 18-24 believe they will work in retirement
- 65 per cent of Canadians aged 25-34 believe they will work in retirement
- 69 per cent of Canadians aged 35-44 believe they will work in retirement
- 68 per cent of Canadians aged 45-54 believe they will work in retirement
- 73 per cent of Canadians aged 55-64 believe they will work in retirement
Recent CIBC research indicates that young Canadians are particularly optimistic about their retirement plans and see themselves retiring having saved a comfortable nest egg. The results of this poll indicate these same Canadians are planning to work in retirement suggesting many are planning to work in retirement by choice.
However, a key finding of the poll is that while only 6 per cent of Canadians between the ages of 25-34 say they will retire due to health reasons, nearly one-fifth of retired Canadians say their health forced them to retire (19 per cent). This underscores the importance of creating a holistic financial plan, because though most Canadians may plan on working in retirement to partially supplement their income, unexpected life events may prevent them from doing so.
“While most Canadians may intend to continue working in retirement, unexpected life events do occur. Meeting with a financial advisor on an annual basis to ensure you’re on track to meet your retirement goals, and adjusting your plan as needed is important,” added Ms. Kramer.
Canadians looking to achieve their retirement goals should consider the following tips and advice:
Meet with an Advisor and Build a Retirement Strategy: An advisor can help you determine the income you need in retirement. An advisor can also help to identify opportunities to build savings and structure a repayment plan that allows for debt reduction, both key elements of a long term retirement strategy.
Prepare for the Unexpected: Whether you plan to continue working in retirement or dream of spending time on a beach, Canadians should be prepared for unexpected life events. Meeting with an advisor on an annual basis will ensure you are on track to meet your particular goals, and can help you plan for potential obstacles.
Manage and Track Spending: Managing cash flow effectively is a element in both retirement savings, and making the most of your retirement income. Free services like CIBC CreditSmart can help Canadians stick to their budget. Free to CIBC credit card holders, CIBC CreditSmart allows clients to set a budget limit on each spending category on their credit card, and be notified by phone, email or online message when they exceed their customized budget.
KEY POLL FINDINGS
Percentage of Canadians that plan to continue working into retirement by region:
Highlights from across Canada:
- British Columbians were the most likely to say they will continue working in retirement (80 per cent)
- Manitoba and Saskatchewan had among the highest percentage of respondents that believe they will start a new business in retirement (16 per cent)
- 30 per cent of Albertans said they will do occasional consulting in retirement
- 34 per cent of Quebec residents said they will stop working completely
- 9 per cent of Ontario residents said they will continue working full-time
Each week, Harris/Decima interviews just over 1000 Canadians through teleVox, the company’s national telephone omnibus survey. These data were gathered in a sample of 1,116 employed Canadians and 683 retired Canadians between September 8th and 19th, 2011. A sample of this size has a margin of error of +/-2.9% and 3.7% respectively, 19 times out of 20.
CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com.
For further information:
Kevin Dove, Senior Director, External Communications and Media Relations: (416) 980-8835 or [email protected]