Recession Prompts Financial Executives To Rethink Retirement, Survey Shows

TORONTO - Executives may be spending more of their golden years on the job than on the golf course, a new study suggests. In fact, almost half (45 per cent) of chief financial officers (CFOs) surveyed recently stated that they are delaying or reconsidering their retirement plans. The large majority (93 per cent) who intend to extend their working years attribute the change in plans to the economy.

The survey was developed by Robert Half Management Resources. It was conducted by an independent research firm from Dec. 17, 2008 to Jan. 14, 2009, and is based on interviews with more than 270 CFOs across Canada.

CFOs were asked, "How, if at all, have your retirement plans changed in the last five years?" Their responses:

Your retirement plans have not changed .......................... 49%
You have more uncertainty and cannot predict when you
will retire .................................................... 23%
You plan to spend more time working than you did
five years ago ................................................. 22%
You plan to spend fewer years working than you had
intended five years ago ........................................ 4%
Don't know ...................................................... 1%
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99%(*)
(*) Survey does not add up to 100% due to rounding.

CFOs who plan to spend more years working also were asked, "Which one of the following is the primary reason your retirement plans have changed?"

Their responses:
The economy (e.g., stock market, RRSP) ........................... 93%
Change in family needs ........................................... 5%
Social security concerns ......................................... 1%
Other ............................................................ 1%
------
100%

"As executives remain in the workforce rather than fully retire, employers are benefiting from the vast knowledge and skills that is retained with these professionals," said David King, executive vice president of Robert Half Management Resources. "Despite the change in the economy, companies may still offer additional benefits that the baby boomer generation values, such as greater scheduling flexibility or part-time employment."

King noted that not everyone planning to stay in the workforce may want to put in a 40 hour week. "Utilizing consultants or interim project professionals to offset part-time arrangements provides cost-effective solutions to staffing concerns."

About the Survey

The national study was developed by Robert Half Management Resources. It was conducted by an independent research firm and is based on more than 270 telephone interviews with CFOs across Canada.