Financial plan

Canadians with a written financial plan are optimistic about retirement, despite global uncertainty

Canadians are feeling the pinch, but planning ahead gives confidence and a sense of security

TORONTO, November 15, 2022 /CNW/ – Fidelity Investments Canada ULC today released the Fidelity 2022 Retirement Report. Now in his 17e iteration, this year’s report presents Canadians’ perceptions of the main risks to financial security in retirement and demonstrates once again that Canadians who have a written financial plan feel better prepared for retirement financially, socially , physical and emotional than those who don’t.

Fidelity’s Retirement Report focuses on how Canadians close to retirement, and already retired, are approaching the transition from the workplace to adopting new routines in the next stage of their lives.

In 2005, Fidelity Investments Canada released a groundbreaking research report that outlined five key risks to maintaining a source of retirement income for life: longevity, withdrawal risk, asset allocation, inflation and health care costs. While still factored in, this year’s report delved deeper into the five key risks with a focus on inflation and the rising cost of living, providing insight into their impact on the timing of Canadian pension plans. .

“With stubborn inflation, market volatility and global uncertainty, it’s no surprise that Canadians are worried about their future and their retirement,” said Peter Bowen, Vice President, Tax and Retirement Research, Fidelity Investments Canada ULC. “However, Canadians continue to demonstrate the value of advice and planning: those with financial plans feel more secure and prepared for retirement. Those who don’t have a plan should seriously consider the benefits it could have for their overall well-being.

Retirement is different for everyone – whether it’s travelling, trying new hobbies or spending more time with friends and family – but it’s consistently apparent that pre-retirees who work with an advisor were more likely to say they would enjoy the retirement lifestyle they envision than those who did not.

Main conclusions:

The Importance of a Written Financial Plan in Retirement Planning

  • 83% of pre-retirees with a written financial plan feel financially prepared for retirement, compared to just 47% of those without one
  • Only 23% of pre-retirees said they have a written financial plan
  • Quebec has the highest proportion of pre-retirees with a written financial plan at 30.7%
  • The majority (83%) of pre-retirees with a written plan worked with a financial advisor to develop it. Working with an advisor to build your written retirement plan is a great way to feel better prepared for retirement.

Risks to financial security in retirement have increased

  • The percentage of pre-retirees who indicated that each of the five key risks posed a moderate to high risk to their retirement financial security has increased since Fidelity last asked these questions in 2014. Rising inflation and volatility markets this year have brought these risks to the minds of many Canadians planning for their retirement.
  • Given these risks, the percentage of pre-retirees who indicated that they felt financially, socially, physically and emotionally prepared for retirement was lower than last year.
  • Retirees ranked inflation as the biggest risk to their financial security, with health care costs ranking second

Rising cost of living delays retirement

  • 62% of pre-retirees said the rising cost of living is preventing them from retiring when they want to (compared to 56% of Canadian pre-retirees last year)
  • 66% of pre-retirees indicated “that inflation will reduce the purchasing power of their savings and have a negative impact on their standard of living”
  • Ontario has the highest proportion of pre-retirees concerned about the impact of inflation, at 69.9%
  • Many Canadians have always worried about not having enough money to retire. The rising cost of living caused by rising inflation is exacerbating these savings concerns and making many Canadians less comfortable with their retirement plans.

For more information on Fidelity’s 2022 Retirement Report, visit www.fidelity.ca/retirement.

Get the latest updates and information from Fidelity
For Canadians interested in learning more about the latest retirement trends and steps they can take to be more resilient, Peter Bowen and Michelle Munro, Director, Tax and Retirement Research, will provide their insights. on this year’s results across all Fidelity platforms, including: upside down live webcasts, FidelityConnects podcasts, written commentary on Fidelity Canada social media channels and on Fidelity.ca.

About Fidelity’s 2022 Retirement Report

loyalty Canada is committed to helping Canadians think about their retirement. As part of this commitment, Fidelity Canada conducts an annual survey of investors on retirement issues and planning and publishes an annual report that summarizes timely information that can help Canadians feel better prepared for retirement.

Fidelity’s 2022 Retirement Report explores the role and value of financial advice in Canadians’ retirement planning. loyalty Canada surveyed 1,917 Canadians aged 45 and older online from July 14 to July 26, 2022. A disproportionate sample of pre-retirees and retirees was drawn to allow regional and gender analysis. The results were then weighted to reflect the national proportional distribution of people aged 45 and over based on Statistics Canada census data. If a probability sample of this size were taken, it would yield results accurate to within +/- 2.2 percentage points, 19 times out of 20.

This information is provided for informational purposes only and should not be construed as tax advice or recommendations. Each individual’s situation is unique and should be reviewed by their own legal and tax advisors.

About Fidelity Investments Canada ULC

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and reliable investment portfolios to help them achieve their financial and personal goals.

As a privately held company, our world-class staff and resources are committed to doing what’s right for investors and their long-term success. Our customers have trusted us $186 billion of assets under management (at November 8, 2022) and include individuals, financial advisors, pension plans, endowments, foundations and more.

We are proud to offer investors a full range of domestic, international and global income-oriented mutual funds, ETFs, asset allocation strategies, managed portfolios, sustainable investment products, alternative mutual funds and a program for high net worth investors. Fidelity is available through a number of advisory-based distribution channels, including financial planners, stockbrokers, banks, and insurance companies.

Commissions, trailing commissions, management fees, brokerage fees and expenses all may be associated with investing in mutual funds, asset allocation services and ETFs. Please read the mutual fund or ETF’s prospectus, which contains detailed investment information, before investing. Mutual funds and ETFs are not guaranteed. Their values ​​change frequently. Past performance cannot be repeated.

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Related links
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SOURCE Fidelity Investments Canada ULC

For further information: please contact: Chris Pepper, Vice President, Corporate Affairs, Fidelity Investments Canada ULC, T: (416) 307-5388, M: (416) 795-7762, E: [email protected]