Close to one out of two workers will see their standard of living decline once they retire, according to a CROP survey conducted for the Ordre des conseillers en ressources humaines agréés.
Less affluent workers, i.e. those with annual household incomes of $60,000 or less, will have the hardest time making ends meet after they retire. Over 55% of these workers indicated that they won’t be able to enjoy the same standard of living once they’ve left the workforce.
The survey also shows that 35% of workers don’t put anything aside for their retirement. This percentage is even more disturbing among workers with annual household incomes of under $40,000, 54% of which say they aren’t saving for their retirement years.
But 85% percent of respondents indicated they would pay into a pension plan if their employer introduced one.
Although most workers view their financial situation at retirement with a fairly jaundiced eye, young workers (aged 18 to 34) are more optimistic. Over 30% of these respondents think they’ll be able to maintain their standard of living when it’s time to retire. In fact, 60% reported they’ve already started saving for their retirement. When asked if they would participate in a pension scheme offered by their employer, 80% said they would.
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Retirement risks and strategies