A recent internal poll conducted for the Canadian government shows that many Canadians in their 60s are considering postponing their retirement due to concerns about ongoing inflation. The poll, titled “Continuous Qualitative Data Collection Of Canadians’ Views,” was carried out by the Privy Council Office and was published on Oct. 7, 2022. The report stated that, “Participants nearing retirement expressed concerns about a number of issues including the cost of living,” and went on to suggest that respondents’ long-term financial outlook was bleak.
In response to these concerns, many respondents said they were rethinking their retirement plans and were considering extending their time in the labor force, either part-time or full-time, to improve their household incomes. The study, which was obtained by Blacklock’s Reporter and was commissioned under a $2.4 million contract with The Strategic Counsel, also found that some respondents expressed concerns about the impact of taxation, particularly for those with a partner or spouse receiving government benefits or income supplements.
These findings are consistent with a survey conducted by Ipsos on behalf of the Canadian Institute of Actuaries in 2020, which found that 40% of non-retired Canadians did not know when they would retire, and 14% did not expect to retire at all. The survey also found that COVID-19 has impacted Canadians’ timeline to retirement, with 23% of respondents reporting that their plans have been affected.
The pandemic has also had an impact on household incomes, with 36% of respondents saying they suffered a drop in income due to COVID-19. Furthermore, 25% of respondents reported taking on additional debt due to the pandemic. Statistics Canada reports that the average retirement age in 2022 is 64.6, but the actuaries’ report found that at least 4% of respondents expect to work past 70.