Inflation and public health are concerning but Fidelity Investments’ report highlights resilience
The ongoing pandemic and the rising cost of living are challenging for many Canadians’ finances, but for retirees and those nearing retirement, can they remain optimistic?
Almost three quarters of retirees and more than half of pre-retirees (over 45) said that COVID has changed the way they live or expect to live in retirement.
New survey stats from Fidelity Investments Canada show that inflation is the most concerning issue currently, with both retirees and pre-retirees wondering how it might affect their plans.
For some, it will mean facing up to a new reality.
“Change is the big story in this year’s report” Peter Bowen, Fidelity VP, Tax and Retirement Research told Wealth Professional. “The global health crisis and the cost of goods and services going up are influencing how Canadians envision their retirement, what they value and are worried about, the timing of retirement and so much more.”
Canadians from B.C. approaching retirement are most worried about inflation (64%) while the same in Quebec are less concerned (52%). At 71%, pre-retirees in Quebec have the most positive outlook on retirement, compared to 62% in B.C., the lowest among all regions.
Financial planning
The survey highlights the importance of having a clear plan for retirement income, and why working with an advisor makes sense.
Retirees with a written financial plan were almost twice as likely to be optimistic as those without (85% vs. 46%), while 9 in 10 pre-retirees with a plan expressed positive sentiment. Most of those with a plan worked with an advisor.
“We found that Canadians who work with a professional financial advisor feel optimistic and better prepared for what’s ahead,” added Bowen.
Fidelity Canada surveyed 1,901 Canadians aged 45 and older online from August 1 to August 20, 2021.
Read the full report at https://go.fidelity.ca/retirement.html
