Like many Canadians approaching retirement, you’re dreaming of your golden years. But a new poll finds many retired Canadians regret giving up work and most believe semi-retirement is the ideal.
According to the CIBC poll, 27 per cent of retired Canadians regret retiring and 23 per cent have tried re-entering the labour market. Half are hitting the pavement due to financial concerns but 59 per cent want the intellectual stimulation.
But just a third of those who tried to re-enter the labour market post retirement did so successfully at a similar pay and level. The rest were only able to enter at a lower level/pay or gave up trying.
The poll also found half of all Canadians would rather keep working past age 65 than retire and endure a lower standard of living, while 78 per cent believe reducing their work hours or semi-retirement offers the best of both worlds. One in five Canadians, meanwhile, say their retirement plan is all set, and 51 per cent of working Canadians aged 55 to 64 secretly wish their employer would offer them a severance package to leave.
“Too many Canadians approach retirement without a plan which can lead to unnecessary stress, worries about money and even course corrections,” says Jamie Golombek, Managing Director, CIBC Financial Planning and Advice.
“It’s important to visualize your retirement and be clear about how you’ll spend your time. While some choose to stop working entirely, others gradually ease into it. Consider how tax strategies can help you keep more of your money and make it easier to achieve the retirement lifestyle you want.”
Those strategies could include splitting up to 50 per cent of your eligible pension income with your spouse or common-law partner. By decreasing your own income, you may be able to preserve your income-tested government benefits, such as the Old Age Security Pension and the Age Credit. But no tax advice is one-size-fits-all. Pension splitting may help lower your tax bill and preserve government benefits but it may also cause your spouse/partner to lose some – or all – of those same benefits.