62% of Canadians ready to pay more for a better retirement

A survey conducted by Willis Towers Watson among 30,000 employees in 19 countries, including 2,000 people in Canada, reveals that retirement is of great concern to workers.

Not only this, they are also ready to pay more to earn more once they have left the workforce, but they also think they will have to work longer. Canadians seem relatively pessimistic regarding their retirement and the amount they will receive.  The results differ slightly depending on the age: those ready to give more now for later financial security include 71% of baby-boomers, 65% of Generation X and 56% of Generation Y, giving an average of 62%. Almost all agree on one thing: about three-quarters of those surveyed believe that their retirement will be less comfortable than that of their parents. Notable also is that a large majority of Canadians (67%) would prefer a retirement benefit guaranteed for life rather than funds to be invested, since they may run out.

Working more for the future, bad for health now?

To provide a better standard of living in retirement, some people will be able to count on an inheritance from their parents, while others may have to sell their property. But the solution most commonly envisaged is to work longer. 26% of Canadians surveyed believe they will have to delay their retirement until after age 65, and 13% to after age 70. The most pessimistic (3%) think that they will never have the means to retire! This mindset has an impact on health, since 54% of those who are thinking of quitting working life after 70 years of age display a stress level greater than average and only 46% say they are in good health. Also, 36% feel stuck in their job, a result of the prospect of working longer. As a comparison, in terms of stress only 30% of those who think they will be able to retire before 65 have a higher level than average, and healthwise 61% say they have nothing to complain about. Only 27% of them feel stuck in their job.

An avenue for employers to explore

Canadian employees are relying heavily on their employer’s retirement plan, since at the moment they are instead spending money not used for currently living expenses to repay their debts or mortgage loans. This information is particularly interesting for companies in sectors that are competitive for finding candidates. To attract them, they could, if they have not done so already, set up interesting retirement plans as well as awareness and training plans on the subject.

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