Canadians believe pandemic will alter retirement path: Research

Published Sep 29, 2021 • 1 minute read

A pile of Canadian $100, $50, and $20 bills. Photo by File Photo /Getty Images

Canadians fear carrying pandemic debts into their retirement, according to the Canadian Institute of Actuaries.

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The institute also found that 14% don’t believe they will ever be able to retire.

“With Canadians earning less, increases in debt followed suit,” said the Retirement Risk Survey, according to Blacklock’s Reporter.

“The report reveals 25% of respondents took on additional debt due to the pandemic with higher percentages seen among students and self-employed Canadians, both at 33%. Also exposed were those who rent, 34%.”

The findings by Ipsos Public Affairs were from a questionnaire of 1,529 people.

“With the pandemic in its fourth wave the Canadian retirement landscape remains a vulnerable sector,” the risk survey said.

One-third of those in the survey say their incomes dropped because o the pandemic.

Sixty-nine per cent say COVID has changed their retirement timelines.

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“Canadians have a lot of uncertainty about their retirement,” said the report.

Statistics Canada says the average retirement age is 64, but 4% of those in the survey believe they will need to work past 70.

‘“Forty per cent of non-retired Canadians do not know when they will retire, and a further 14% state they do not expect to ever retire,” the risk survey said.

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“The large number of ‘don’t know’ responses to this question reflects the fact some Canadians are not engaged in employment outside the home. The populations with the highest proportion of ‘don’t know’ responses were students (65 %), homemakers (69 %) and those who are disabled (62 %).”

The Canadian Institute of Actuaries says a person retiring at age 65 will need approximately $900,000 of savings.

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