Nearly two-thirds (64%) of so-called “flexforce” Canadians anticipate needing to work into their senior years because they won’t have enough saved for retirement.
TD Bank released a survey of 1,101 Canadians who are “gig workers”, “job jumpers” and “postponed professionals”.
With the days of having one career with one organisation a distant memory for most, this group is redefining what traditional employment looks like.
But around four in 10 (41%) are not sure when they will retire given their employment situation.
Some 47% of Canadians following unconventional career paths feel uncertain, and 34% feel worried about their future, with only a small number (11%) claiming to feel secure about saving for retirement.
Jennifer Diplock, associate vice president, personal savings and investing at TD Canada Trust, said: “Planning for retirement can be overwhelming in any circumstance, but it becomes even more challenging when it’s tied to the uncertainty that accompanies ‘flexforce’ employment.
“An increasing number of Canadians are choosing temporary or non-traditional employment and are having to rethink retirement – specifically what retirement will look like for them and what steps they’ll need to take in order to feel confident about achieving their retirement goals.”
Goals
When it comes to retirement goals, 55% of flexforce Canadians said they are not able to save as much as they need to each year to meet their goals.
Just over three-quarters (76%) wish they made financial contributions at an earlier age.
Canadians report that the top three factors holding them back from contributing to their retirement savings include:
- day-to-day bills and expenses (49%),
- paying off existing debt (32%), and,
- paying for their lifestyle (27%).
“Today’s changing workforce brings a number of variables and unpredictability, so building a strong foundation can help steer you in the right direction,” said Diplock.
Do I still Collect my pension after I quit? “Many employers no longer offer a pension plan and the onus now falls on employees to not only self-fund their retirement, but to also determine how much money they’ll need and how to save for it.
“This shift in planning for retirement can be daunting, which is why it’s more important than ever to have a personalised plan in place to help make your retirement whatever you want it to be.”
