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Canadians’ views on retirement are shifting dramatically because the cost of living rises and longer life expectations change into the norm, with the thought of retiring at age 65 being one of many early casualties.
Seventy-four per cent of Canadians between the ages of 24 and 44 say the standard retirement age — with the notion that it represents a tough cease on one’s working life — is an outdated idea, in accordance with a nationwide Leger survey revealed by Wealthsimple Inc.
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”(Youthful generations) are in search of flexibility, personalization and management over their future, moderately than feeling managed by standard knowledge,” mentioned Wealthsimple chief govt Mike Katchen.
Many millennials and era Z Canadians are aiming for a contemporary type of retirement that enables the pursuit of non-public {and professional} passions all through their grownup lives, as a substitute of a linear profession path to retirement, the research mentioned. This might imply a hybrid combine of labor, journey, volunteering and entrepreneurial pursuits, or all the above.
These evolving concepts on work-life stability come whilst day-to-day life turns into much less reasonably priced.
Components that supported earlier generations on their path to retirement, comparable to shopping for a house or receiving employer-sponsored pensions, usually are not as accessible to Canadians in the present day, Wealthsimple mentioned.
Roughly 60 per cent of working Canadians wouldn’t have entry to a office pension.
“This new outlook on retirement is motivated by greater than a difficult financial local weather,” mentioned Katchen. “It’s a brand new perspective on the longer term.”
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The survey mentioned 41 per cent of 25-to-44-year-olds say they’re motivated to retire properly earlier than age 55.
The respondents mentioned that is to allow them to can chase greater ambitions associated to small enterprise, consulting, not-for-profit work, ardour initiatives or artistic pursuits. The ambitions replicate a rising need to “work to reside” — moderately than “reside to work,” particularly when it’s for another person.
Greater than half of all respondents really feel that investing has given them extra flexibility and selection than they may have imagined, the research mentioned.
It discovered that 55 per cent of 18-to-24-year-olds see investing as a strategy to fulfill the ambition of retiring.
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Solely 19 per cent of 25-to-44-year-olds hope to develop their household, whereas 41 per cent of them are nonetheless saving to buy a house.
Leger surveyed 1,501 Canadians on-line from Feb. 5 to 13.
• E-mail: dpaglinawan@postmedia.com
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