Study finds most believe it's a lot more than 20 years ago amid rising complexity

Retirement isn’t as straightforward as it used to be and Canadians who are prepping for that key stage in their life are feeling the strain.
A new report from Fidelity Investments Canada reveals that 88% of respondents feel that retirement is more complex than it was 20 years ago and that they will need far more money saved than their parents’ genertaion would have.
Among those aged 45 and older, most think they will need $1,020,000 in retirement funds, compared to $447,000 in 2005, which in today’s money would be $685,000.
But it’s about more than the finances, with 85% of respondents saying that retirement is not a ‘hard stop’ for work but a transition to flexible work practices or passion projects, with most expecting to work beyond 65 and anticipating that the retirement age will continue to rise and 46% saying they may have to delay retirement due to the cost of living. The average age of retirement is 61.
The study found that 81% of those who are already retired have a positive outlook on retirement, but for pre-retirees this falls to just 59% with inflation, world politics, and the Canadian economy among the top concerns across bth groups.
As for their wealth, 60% of pre-retirees and 55% of retirees would like to pass on a significant portion while they are still alive, due to difficulties with the next generation achieving their financial goals without an early inheritance, although 51% of those who would like to pass on wealth early have not had conversations with their family or advisors.
The importance of engagement with advisors is clear with 90% of those already ready who have a written financial plan saying they are financially prepared for retirement versus 55% who have no plan. For pre-retirees, these stats shift to 81% vs. 39%.
Most (85%) with a written financial plan say they used a financial advisor in its construction and those who work with a financial advisor are more likely to feel optimistic about future investment opportunities compared to those without advisors.
"Canadians tell us that retirement planning has become more complex, with factors such as global political uncertainties affecting financial stability,” said Peter Bowen, Vice President, Tax and Retirement Research at Fidelity Canada. “Proper financial planning is critical in this context, with our survey consistently revealing that having a written retirement plan can significantly enhance preparedness."