According to Mackenzie’s Retirement Reality Check, working Canadians expect to retire later and need significantly more savings than current retirees
TORONTO, ON – October 27, 2020 – Mackenzie Investments today released its second annual retirement study, Mackenzie Retirement Reality Check 2020. The new report shows that working Canadians will be facing a new retirement reality when compared to their parents and grandparents. Further, they are seeking more insight and assistance from the financial services industry on how to effectively make the transition to retirement.
The study, conducted by Pollara Strategic Insights, revealed significant differences in the retirement dynamics of working Canadians compared to those who are already retired:
• Working Canadians expect to retire, on average, at the age of 62 (the average retirement age was 57 for those already retired).
• They anticipate requiring more than twice as much in retirement savings ($878,000) compared to current retirees (who reported having, on average, $427,000 in savings when they retired).
• Almost half of those who are not yet retired (45 per cent) plan to continue working in some capacity (versus just 9 per cent of those who are currently retired).
• Non-retirees also have higher expectations for their ideal retirement lifestyle, with 76 per cent planning to travel extensively (versus 44 per cent of retirees).
• Further, 51 per cent of those not currently retired expressed a desire to be involved in philanthropic initiatives (versus 33 per cent of retirees).