Most fiftysomethings plan to work in retirement

[Ihatetaxes]

I don't think many of those polled are members here as there are a LOT of people out there not planning for retirement...

http://www.theglobeandmail.com/globe...rticle4489503/

[Jungle]

And 45% of Canadian's don't have an emergenccy fund either.

Good luck to us all when the housing market crashes and jobs are lost.

[Square Root]

i agree that this survey sounds discouraging for those getting close to retirement age. Keep in mind though that it is a survey(small one at that) and I suspect the responses are not neccessarily what will actually happen. Many people have prepared diligently for retirement. Also, CPP and OAS are quite important factors for many people but often forgotten when they respond to these surveys. And finally the fact fhat these surveys are usually sponsored by media or finanancial services firms who are trying to sell media attention or scare people into more product. In any event those with a secure retirement appear luckier than ever.

[HaroldCrump]

I saw that 45% don't have emergency fund survey as well.
IMHO, the data is incomplete and misleading.
My initial reaction was that - great, this means the other 55% have some emergency funds.
That is actually a surprisingly good number.

But then I realized that the survey does not say how much the emergency funds are.
Is it 1 month of expenses, 3 months, 6 months, or what?
I suspect many folks have $500 in a savings account at the bank and consider it an emergency fund.

[Four Pillars]

To add on to what Harold said - you can't consider one variable (ie presence of an emergency fund) of a person's financial picture and draw any kind of meaningful conclusions.

Like he said, how big are the emergency funds that do exist and how are those amounts connected to the regular family expenses (ie one month, 6 months etc)?

Contrary to some opinions in here, emergency funds are not the be all and end all of financial success. It's possible to have a poor financial situation and a decent emergency fund. It's also very possible to have no emergency fund and a great financial situation.

It's your overall financial position that will determine when you can retire and how many options you have in case of an emergency ie job loss etc.

[MoneyGal]

Meh. Fully 2/3rds of those polled said they weren't going to work for financial reasons, but because they "wanted to stay active" and "for the social connections." I would hardly point to these survey results as evidence of unpreparedness.

[Square Root]

Meh. Fully 2/3rds of those polled said they weren't going to work for financial reasons, but because they "wanted to stay active" and "for the social connections." I would hardly point to these survey results as evidence of unpreparedness.

Right. I also think that many people are too proud to admit that they need to work after retirement age for financial reasons. So let's all agree to ignore these surveys in future.

[MoneyGal]

I finally clicked on the link about the "45% have no emergency fund." By their definition, I do not have an emergency fund. But am I worried about funding an emergency? No.

[Daniel A.]

Putting aside this survey my feeling is the problem is greater than suggested.
When looking at what contribution rates are in RRSP and the value of those holdings put out by Stats Canada combined with a lack of work place pensions it would seem things may be worse.
The target group 50-59 is telling, having a realistic plan to leave the work world I suspect most people don't have.
Those with DB pensions only need to look at their statement every year and have a fairly good idea of where they stand but when 65% or more don't have a DB pension the game is very different.

CPP & OAS won't carry most people, in talks I have with people just being retired and sitting for coffee casual conversation the subject does come up.
They wonder how I'm retired as I don't look that old then speak of their own plans.
I've come to understand just how little people really know about there own situation and the assumptions they have.
Generally all I can suggest is they do some research on what is real, the lack of knowledge about how CPP works and what else is involved leaves me wondering.

[CJOttawa]

Was there a link within the article to the methodology of the study?
I'm left with questions like, "what do respondents define as an emergency fund?" I tend to assume the worst: they're defining lines of credit (or worse, credit cards) as such.