A report by the Royal Bank found that the reality of retirement in Canada isn't quite what people expect it to be. Respondents were Canadians 55 years and older, some in their pre-retirement years and others who have already retired. Retired Canadians called out three key misconceptions about retirement:
Thinking you’ll know your retirement date well in advance?
While more than half (55%) of pre-retirees aged 50+ expect to know their retirement date more than one year in advance, this was true for only 39% of retirees aged 50+… and 16% had no advance notice at all. I fit into that category, I decided to retire only about six weeks before I retired, that was a mistake. If you can plan so you can get ready for retirement.
Expecting to winter in warmer climates as a snowbird when you retire?
Close to one-third (29%) of pre-retirees expect to be snowbirds, but only 18% of retirees are flocking south in the winter. Ranking higher for retirees: spending time with family (51%) and friends (48%). We did spend time immediately after retirement in warmer climates, but the novelty wore off very fast. We found that in the first 10 years of retirement we spent more time with family and friends which is in line with most people who retire.
Planning to return to work in retirement?
While half (50%) of pre-retiree’s plan to work in retirement, only 11% of retirees responded they had returned to full-time or part-time work. The main reasons why pre-retirees say they plan to go back to work: to stay active, mentally (64%) and physically (48%); to stave off boredom (44%); and to generate income (43%). I was one of the 11% that worked after I retired, and I worked for about 8 years before I fully retired. I enjoyed working but I found it restricted many of the other activities I became involved with after I retired so I had to choose work or fun. I chose fun.