Every year Fidelity Investments Canada completes a study on retirement trends; the 2023 report is called The Advantage of Advance Planning for Canadians Amid Inflation and Uncertainty.
Here are the key takeaways from this study:
The spike in inflation over the last year has negatively impacted Canadians’ attitude towards retirement. In 2018, 80% of pre-retirees and retirees reported having a positive outlook towards their retirement. In 2023 this percentage dropped to 73%. This was mainly due to the increase in cost-of-living expenses.
Furthermore, as expenses continued to rise over the year, 42% of Canadians reported to be saving less in comparison to previous years.
Canadians save and invest for various reasons, the study found that immigrants are more likely to save to help support family members than their retirement.
For those Canadians that are saving, the report shows that almost half are investing exclusively in safe assets (cash equivalents) this is an increase of 10% over last year. This increase in safe assets could potentially reduce their retirement income over the long term.
The average lifespan of Canadians has increased significantly due to healthier lifestyles and medical advancements, giving us on average 20+ years of retirement to save for. Despite the apparent benefits, only 28% of Canadians have a written financial plan.
“However, Canadians with a written financial plan have reported feeling considerably better prepared, both financially (91% vs 58%), emotionally (85% vs 69%), socially (84% vs 69%), and physically (88% vs 73%) compared to those without such a plan.” – Introducing the 2023 Fidelity Retirement Report: The Advantage of Advance Planning for Canadians Amid Inflation and Uncertainty written by Fidelity Investments Canada. Quebeckers are more likely to have a written plan (33%) and therefore (79%) have a more positive outlook on retirement.
For those that have a written financial plan, 82% worked with a financial advisor to create the plan. Of the pre-retirees that have a financial advisor, 64% claim to have peace of mind when it comes to being on track to achieve their financial goals, compared to 34% of those that go it alone.
Regardless of where you are on your retirement journey, it’s never too late to start planning, investing and taking advantage of the advice and resources that a financial advisor provides.
As always, if you have any questions or concerns regarding your retirement plan, please don’t hesitate to contact us. To read the whole report click on the link below.
Happy Summer!
Tracey and Paige
Products or services related to investments, investment recommendations, financial planning, retirement planning, and investment reviews are provided through our mutual fund dealer Security Financial Services and Investment Corp. 4665 Yonge Street, Suite 309, Toronto, ON M2N 0B4 t 416.964.0440
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