Twenty-seven per cent of retired Canadians regret retiring and 23 per cent have tried re-entering the labour market, found a CIBC poll released Jan. 30.

Fifty-nine per cent of those who would like to go back to work say intellectual stimulation is a motivator, while 50 per cent cited financial concerns.

The survey also showed that half of all Canadians would prefer to work past age 65 rather than retire and face a lower standard of living. Seventy-eight per cent said they believe reduced work hours or "semi-retirement" would give them the "best of both worlds."

Tax planning may help

"Too many Canadians approach retirement without a plan which can lead to unnecessary stress, worries about money and even course corrections," says Jamie Golombek, Managing Director, CIBC Financial Planning and Advice.

Golombek adds that most people think about maximizing their retirement income in terms of earning more or spending less. “But few consider how to reduce their tax bill and keep more of their money when drawing down their assets – and effectively building their retirement paycheque," says Golombek.

Income splitting

He gives the example of a retiree electing to split up to 50 per cent of his or her eligible pension income with a spouse or common-law partner. This may allow for income tax savings of up to 30 percentage points annually, depending on province of residence and the difference between the tax rates of the pensioner and his or her spouse/partner. This strategy might also enable retirees to decrease their income enough to preserve income-tested government benefits, such as the Old Age Security Pension and the Age Credit.

Golombek, warns however, that pension splitting may have an impact on the spouses’ or partners’ government benefits, so expert advice is needed. "Getting the right advice is crucial, so be sure to consult with your financial and tax advisors to ensure you're taking the right steps to reduce your overall tax bill and keep more of your hard-earned money to enjoy your retirement."