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General Social Survey: Older workers and their retirement plans and preparations
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About two-thirds of "near-retirees" anticipate that their retirement income will be adequate or more than adequate to maintain their standard of living once they have left the workforce.
Individuals who receive advice are more likely than others to express confidence in the adequacy of their retirement savings to maintain their standard of living in retirement.
While most Canadians approaching retirement receive financial advice, including advice about retirement planning and programs, almost 3 in 10 do not.
Individuals who do not receive financial advice are less likely to expect their retirement income to be adequate than those who do receive advice. This relationship remains even when other characteristics such as income, pension coverage and registered retirement savings plan assets are taken into account.
Of the 7.2 million Canadians aged 45 to 59 in 2007, about 80% or 5.7 million were actively or recently employed and had not previously retired.
Of these 5.7 million near-retirees, 71% received financial advice from at least one source, and 50% received advice from at least one source in the financial industry. Almost 3 in 10 (29%) did not receive financial advice from any source.
While most individuals approaching retirement said they understood Canada's public retirement income programs, such as the Canada Pension Plan, Quebec Pension Plan and Old Age Security, one-quarter said they did not understand these programs at all.
Factors associated with seeking information
A number of factors are associated with the likelihood of receiving financial advice and understanding public programs related to retirement preparations. These factors include an individual's proximity to retirement, financial resources, and demographic characteristics.
Note to readersThis release is based on two reports in a dedicated issue of Canadian Social Trends that focuses on the retirement plans of individuals aged 45 to 59. Data for these reports draw upon results of the 2007 General Social Survey (GSS) on family, social support and retirement, which are being made available for the first time today. The first report examines when individuals plan to retire, the certainty they have in their plans, and their confidence in their financial preparations. The second report examines the retirement advice and information they receive. The analysis is limited to "near-retirees," defined as GSS respondents aged 45 to 59 who have not previously retired and had at least some employment during the 12 months preceding the survey. The results are based on a series of questions asked about retirement preparations, such as from whom near-retirees typically get financial advice including advice about retirement planning and programs, how well they understand public retirement income programs and whether they have gathered information in preparation for retirement. Questions were not asked about the quality of advice or information received, whether it was acted upon, or whether respondents felt they needed or wanted additional information. |
Individuals who are further from their planned age of retirement are less likely to receive retirement-related information. In 2007, for example, 83% of individuals who planned to retire within five years typically received financial advice, compared with 67% of those for whom retirement was 15 or more years away.
Near-retirees with lower incomes and fewer assets are less likely to receive retirement-related information. For example, 52% of near-retirees with household incomes under $40,000 received financial advice compared with 82% of near-retirees with household incomes of $100,000 or more. Individuals with lower household incomes were also less likely to say they understood Canada's public retirement income programs.
Immigrants who arrived in Canada since 1990 were less likely to receive financial advice than individuals born in Canada.
Definitions, data sources and methods: survey number 4502.
The articles "The retirement plans and expectations of older workers" and "The retirement puzzle: Sorting the pieces" are now available in the September 2008 issue of Canadian Social Trends, no. 86 (11-008-XWE, free), from the Publications module of our website.
For more information, or to enquire about the concepts, methods or data quality of this release, please contact Client Services (613-951-5979; sasd-dssea@statcan.gc.ca), Social and Aboriginal Statistics Division.
