More Canadians expect to be working in their mid-60s because they will need the money, according to an annual survey commissioned by Sun Life Financial.

Nearly three in 10 Canadians, 27 per cent, said they expect to be working full-time at age 66, shortly after the traditional retirement age. That’s up from 26 per cent last year and a sharp increase from 16 per cent in 2009.

Twenty-eight per cent of Canadians expect to be retired. That’s about the same as last year, but down from 55 per cent in 2009.

In the latest survey, released Wednesday, another 29 per cent said they will be working part-time and 15 per cent aren’t sure.

Of those who plan to work at 66, nearly two-thirds, or 65 per cent, said it will be because they need the money. That’s slightly higher than last year; the other third expect that they will want to continue working.

In 2009, just over half said that they would work out of financial necessity.

The poll, conducted online by Ipsos Reid between Nov. 12 and Nov. 20, surveyed approximately 3,000 working Canadians ages 30 to 65.

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On the bright side, the average expected retirement age is 66. When asked the same question in 2011, most cited 69 as the age when they would stop working.

It’s a positive sign that people expect to stop working sooner, said Kevin Dougherty, president of Sun Life Financial Canada.

“People are feeling better that way, but it changes the challenge. It means you will live three years longer in retirement and will need three years’ more savings,” he said.

The survey also found that among those closest to retirement, ages 55 to 65, the average expected retirement age is 67.

For this group, “the big question is whether the jobs and their health will be there,” Dougherty added.

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Eighteen per cent of those surveyed plan to use equity from their home to fund part of their retirement. Of those, nearly one third expect proceeds from their home, either by selling the house or using a reverse mortgage, to comprise more than half of their retirement nest egg.

Real estate is “not necessarily a secure plan,” Dougherty said. “Real estate prices can change quickly.”

On average, Canadians expect approximately 10 per cent of their retirement income to come from home equity, the survey found.

They expect 30 per cent to come from government plans, 27 per cent from personal savings, 23 per cent from employer plans, and 5 per cent from inheritance, the survey found.