Retirement: less Freedom 65

Retraite: de moins en moins Liberté 65

It is on average 62.9 years that Quebec’s non-retirees aged 18 to 64 expect to retire. For a little more than half (53%) of them, it will not be before the age of 65 that they retire, if they take it.

A stroke sensor carried out by the firm SOM on behalf of the organization in Question Retired, the results of which were unveiled Thursday, shows that fewer Quebecers are planning to retire before age 65.

In fact, 43% of Quebec non-retired 25 to 64 years of age believe that it is likely that they will retire before age 65. In comparison, fifteen years ago, this percentage was 62%.

In the same vein, in 2018, 51% of 25-to 64 believe retirement is 65 years or older, whereas this proportion was 30% in 2003.

The survey, conducted between 9 and 30 April, from 1604 respondents age 18 to 64 years from all corners of Quebec, also shows that Quebec’s non-retirees aged 18 to 64 years of age seem to be very attracted by the phased retirement.

“A majority of Quebecers aged 18 to 64 years (60%) are planning to withdraw gradually from their jobs, while only 20% of them think to withdraw definitively from the labour market”, notes the survey Question Retraite, a non-profit organization consisting of partners from all areas, government, financial, business, voluntary and education whose mission is to raise awareness among Quebecers aged 18 to 45 years about the importance of adequately planning for their retirement to achieve financial security.

“The students (82%) and 18 to 34 (72%) are among the groups more likely to think that they will withdraw gradually. The reality seems to be however other, since only 13% of the young retirees are considering retirement have taken this way, the vast majority being permanently withdrawn from the labour market (77%).”

According to the president of Question Retraite, Nathalie Bachand, “these data reveal a constant change in the perception that workers have of their own retirement : they realize that they will have to work longer to accumulate enough money and, increasingly, the aim to completely withdraw before 65 years seems unattainable. The pension is now less seen as an end in itself, but rather as a change in the rhythm of work.”

According to the survey, the main reasons expressed to consider a phased-in retirement are, in order, to slowly get used to the idea of retirement (36%), for income, work longer or to increase their retirement income (14%) and to be able to afford to remain in employment for as long as possible (13%).

In addition, as the scarcity of labor strikes Quebec, one of the solutions adopted by employers is to allow experienced workers to continue their careers, including allowing them to reduce the rate of fire.

The poll Question Retirement argues that the flexibility of schedule is a winning recipe.

“In order to retain more long time people in employment, the possibility of setting your own work schedule seems to be the measure which would the most successful (38%) among non-retirees aged 18 to 64 years of age.”

No objective, no plan of action

The goals of retirement income is still not a practice that is rooted in the québec workers.

The survey reveals that nearly three quarters (73%) of Quebeckers aged 18 to 64 years of age do not have a specific purpose for the revenue that they would like to have at the time they retire. Just 21% of non-retirees have specific goals and an action plan, and 6% have specific goals, but no plan of action in the pocket.

And among the early retirees, only 38% have set goals and a plan of action.

“Oddly, 73% of respondents say they are very or fairly confident about the financial aspects of their pension,” says one.

Question Retirement remarked that the situation had hardly changed since 2013.

“That retirement is permanent or progressive, it is always disturbing to see a lack of planning among many Quebecois,” said Nathalie Bachand. “If they don’t ask now the essential gestures, including the one to equip themselves with specific objectives, several of which could compromise their financial security in retirement. Education being the basis of everything, we will increase our efforts to raise awareness about the importance of savings”.

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