Friday, September 12, 2008

Canada: Study Evaluates Worker Understanding of Anticipated Retirement Income

According to research published by Statistics Canada, about two-thirds of Canadian "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. In addition, 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.

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. However, 29% do not receive any advice.

These results come from two articles by Grant Schellenberg and Yuri Ostrovsky drawing on the results of the 2007 General Social Survey (GSS) on family, social support and retirement: "The retirement plans and expectations of older worker", which examines when individuals plan to retire, the certainty they have in their plans, and their confidence in their financial preparations, and "The retirement puzzle: Sorting the pieces", which examines the retirement advice and information they receive.

Source: Statistics Canada The Daily (September 9, 2008)

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