Unlike the professional sporting world – where many athletes retire, only to return the next season or the one after that – most Canadians who call it a career do so one time only. But according to a recent survey, retiring once may slowly becoming the exception to the rule, as many people are having to re-enter the working world.
Nearly three in 10 respondents to a survey performed by ING Direct indicated that they have had to go back to work after retiring from their jobs. Of these, nearly 50 percent did so because they could no longer afford the cost of living not making what they once did when working full-time.
The specific reasons for going back to work were manifold, but the most common response was having not saved enough prior to retirement, according to the survey. Roughly one-third of participants said that they needed to cut their retirement short because they hadn't put enough money away when they were working for a living. About 31 percent said that their cost of living rose in the time that they left the workforce. Additionally, 30 percent said they were working on a full-time basis, or putting in at least 40 hours per week.
Peter Aceto, president and CEO of ING Direct's Canadian offices, said that this can be a difficult pill to swallow, particularly for those who were looking forward to retirement life.
"The reality of retirement for many Canadians is a sobering reminder that you can't put your financial future on the back burner," said Aceto. "Among the many other financial priorities we face during our prime working years, we need to make sure that retirement planning doesn't get overlooked."
Saving for retirement should never stop
He added that the advice calling for individuals to save early and often can't be overstated. By making saving a priority, Canadians can establish a life-long habit of putting some of their money aside so that they can realize and finance their retirement dreams.
It appears that many young people are learning from retirees' experiences. In a separate survey, also performed by ING Direct, nearly two-thirds of respondents between 18 and 64 years of age said that they regularly contributed to their retirement savings accounts. However, those who saved said that they weren't sure how much they would need in order to retire comfortably.
Financial experts say that this number is best determined by meeting with an advisor who can analyze what each person's specific needs are, based on their income and lifestyle.
Whether retiring or going back to work, there are some important local car insurance issues to take care of. For example, if leaving the workforce, that will likely result in not driving as frequently. Policyholders should be sure to get in touch with their insurer in order to adjust their coverage minimums. Alternatively, if starting to work again, plans should be modified then as well in order to account for putting more mileage on the vehicle. As a general rule, the less frequent one travels, the more affordable plans tend to be.