Thirty-seven percent of Canadian boomers who plan on retiring in the
next five years and who own their own business plan on delaying their
retirement due to current economic conditions, according to the19th
Annual RBC RRSP Poll.
"Knowing when to leave the workforce is a tough decision," said Lee
Anne Davies, head, Advanced Retirement Strategies, RBC. "The best way
to decide when to retire is to think about the lifestyle you want to
lead in retirement and create a plan to help ensure financial stability
and built-in flexibility to adjust to changing life and economic
conditions."
The survey also found that more than a quarter (28 per cent) of
Canadian boomers plan on delaying their retirement due to current
economic conditions. Forty-three per cent of boomers say their
retirement has been delayed between one and two years, 37 per cent say
three-to-five years and nine per cent say they don't know.
"Even for Canadian entrepreneurs who never intend to fully retire from
their business, it's important to regularly fine-tune their long-term
plan," said Davies. "Whether you foresee gradually stepping away from
your business, working part-time or full time, having a plan that
clearly outlines your lifestyle goals and sources of income will help
business owners prepare for their golden years."
According to the survey, one-third (32 per cent) of retiring boomer
business owners, say they will never fully retire, 19 percentage points
above the Canadian boomer average. When asked where they expect to be
at 65, half (50 per cent) of retiring boomer entrepreneurs say they
will be semi-retired or working part-time, compared to 40 per cent of
the general boomer population. In addition, only 37 per cent of
retiring boomers who own their own business expect to be fully retired
at the age of 65, 10 per cent less than the Canadian boomer average (47
per cent).
One-in-four boomers would retire immediately if they had enough money
compared to only 18 per cent of retiring boomers who own their own
business. Half (50 per cent) of boomers say they would continue to work
part-time or occasionally, compared to 54 per cent of retiring boomer
business owners. In addition, one-in-four boomers say they would
continue to work even if they had enough money to retire. Similarly, 28
per cent of retiring boomers who own their own business would also
continue to work.
Fast Facts:
- Two-in-five (42 per cent) boomers started saving for retirement
between the ages of 35 and 54. This is slightly higher for retiring
boomers who own their own business with 43 per cent starting to save
for retirement between these ages.
- Most boomers are doing some retirement planning (77 per cent).
- Almost all boomers have an RRSP (95 per cent). Ninety-eight per cent of retiring boomer business owners have an RRSP.
- The majority (64 per cent) of boomers who have an RRSP have already
contributed to or plan to contribute to an RRSP for the 2008 tax year.
- Overall, more than two-in-five boomers with an RRSP plan to contribute the maximum allowable amount to their RRSPs.
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