According to a Scotiabank survey released today, of those Canadians who plan to retire, 69% plan to work during retirement, mostly to keep mentally and socially active. However, the study goes on to state that 38% expect to work after they officially retire out of “financial necessity.”
Scotiabank motives aside (selling products) that seems like a pretty high number – almost 4 in 10 Canadians will retire but work in retirement to make ends meet.
The study goes on to state:
• 56% of Canadians think they will need less than $1 million to fund their retirement, half of those believe they will need less than $300,000 to retire on.
• 28% of Canadians think they will need between $1 to 2 million to retire on.
• 16% believe they will need more than $2 million to retire on.
“Financial necessity” is a pretty vague term but I hope this doesn’t include travelling for a few months each year, playing golf every day, going back to school or buying a house on the ocean like some retirees plan to do. None of these come cheap.