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Remember those enticing TV ads of a 55-year-old man soaking up the sun on an exotic beach, content that he’s set for life thanks to his retirement planning?Financial institutions offered early retirement plans — but that was long before current economic times dropped the financial bomb.
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Remember those enticing TV ads of a 55-year-old man soaking up the sun on an exotic beach, content that he’s set for life thanks to his retirement planning?

Financial institutions offered early retirement plans — but that was long before current economic times dropped the financial bomb.

For many Canadians today, retiring at 55 is just a dream, according to a recent survey by Sun Life Financial.

The concept of Freedom 55 is a thing of the past as Canadians are living longer and face tougher financial choices in their golden years, said the survey.

Today, the average Canadian family carries a debt load of $100,000. Baby boomers entering their senior years are still struggling with debt, something they had not anticipated while growing up in times of plenty.

But with their health still intact, many anticipate working beyond their retirement years to make ends meet. They are losing faith in weak investments, RRSPs in particular.

They can’t envision company or union pensions, or government pensions and Old Age Security, affording them a comfortable retirement.

And short of a family inheritance, a substantial financial gift from a well-off family member, or winning the lottery to boost their financial status, future seniors could face a tough struggle.

According to the Sun Life survey, fewer than a third of the 3,701 working Canadians from age 30 to 65 polled said they plan to be fully retired by age 66. Seven out of 10 said that goal is out of their reach.

The average anticipated age of retirement now hovers around 68 — up from 66 last year. That is a “fairly short space of time for an attitude change of that degree,” said Kevin Dougherty, president of Sun Life Financial Canada.

“These results are not surprising given the current economic volatility, increasing consumer debt loads, rising health-care costs, longer life expectancy and lack of planning,” said Dougherty.

“We’re also finding that some Canadians believe they’ll have to work longer to be able to pay for basic living expenses.”

Some Canadians are entering their senior years with a surprisingly heavy debt load.

“They’re really thinking of shifting gears, staying in the workforce a little longer, avoid drawing down on the retirement savings for a few extra years or getting themselves a little more ready by paying down debt they thought they’d have paid off by this time,” said Dougherty.

Another factor is Canadians are living longer.

With an average life expectancy now of 85 years, retirees have to figure that into their equation.

“It used to be the worry was ‘What if I die?’ And today it’s ‘What if I live a really long time?’ ” Dougherty said.

Investments have stagnated in recent years, mired in the global-wide financial crisis, and investors often see red instead of gains.

In fact, some banking institutions are seeing a trend away from RRSPs. A recent survey by Scotiabank found roughly 39 per cent of respondents planned to contribute to an RRSP for the 2011 taxation year — down sharply from 53 per cent the year before.

Mix in the federal government’s hints about scaling back Old Age Security and you have reason to be rethink your plans.

“People are starting to see that the government’s not going to be there for us when we’re 65. . . . People are starting to realize they’ve got to fund this themselves,” said Sun Life financial advisor Brian Burlacoff.

And so many of us are beginning to plan the next stage of our working lives, past the age of 65 — finding some comfort in workforce forecasts that suggest our services will be needed well past traditional retirement age.

Rick Zemanek is an Advocate editor.