2024 Fidelity Retirement Report finds that
having a written plan, staying invested, and working with a
financial advisor can help all Canadians achieve their retirement
dreams
TORONTO, April 30,
2024 /CNW/ - Fidelity Investments Canada ULC
(Fidelity) today released the 2024 Fidelity Retirement
Report, sharing the latest retirement trends with
financial advisors and investors, with insights on how Canadians
can better prepare for, and live, in retirement.
"Achieving your retirement dreams is possible with a strong plan
in place," said Peter Bowen, Vice
President, Tax and Retirement Research, Fidelity.
"Despite uncertain economic times, working with a financial
advisor, developing a written financial plan, sticking to that
plan, and especially staying invested can help Canadians live the
retirement they envision. In this year's report, we found that
planning for additional expenses for loved ones and incorporating
that into a financial plan stood out as adding value."
Key themes and findings:
Against a backdrop of economic headwinds and rising cost of
living, Canadians are changing their retirement plans
- 82% of retirees indicate that inflation is having a negative
financial impact on them in retirement.
- 43% of pre-retirees say that the rising cost of living is
delaying when they think they will retire.
- 59% of retirees report helping their non-student adult children
in retirement both with day-to-day expenses as well as big-ticket
items like home purchases, weddings and even education savings for
their grandchildren.
- Why it matters: Economic conditions are clearly
impacting Canadians' retirement plans, highlighting the importance
of engaging a financial advisor who could help Canadians navigate
this environment - especially with new and unexpected
expenses.
Despite the impact to retirement dreams, planning helps
Canadians remain resilient and optimistic about retirement
- 88% of Canadians with a written financial plan feel financially
prepared for retirement compared to 56% of those without one.
- Yet only 27% of Canadians have a written financial plan, and of
those that have one, an overwhelming 85% worked with a financial
advisor to create it.
- Why it matters: While the broader economy is not within
anyone's control, Canadians' financial choices – like having a
written financial plan – are and can go a long way in helping them
secure their retirement.
Staying invested is key to feeling resilient and better
prepared
- Headlines like higher inflation and slow economic growth can
make people feel less certain about investing for retirement, and
they may decide to sell, which could harm their long-term financial
security.
- 81% of retirees who own mutual funds indicate that their
savings for retirement are either staying the same or growing while
their retirement income needs are being met, compared to 59% who do
not own mutual funds.
- Why it matters: Those who have been consistent with
investing are more likely to experience resilience and growth with
their retirement savings.
Regional and gender-based insights:
- Quebec-based Canadians are
most likely to have a written financial plan that specifically
deals with their retirement compared to the rest of Canada (34% vs. 26% average).
- Canadians living in the prairies (50%) and BC (49%) are more
likely to work in some capacity in their retirement compared to
Canadians residing elsewhere (average of 41%).
- A written financial plan can significantly contribute to
improved retirement expectations: 87% of women with a written
financial plan felt positive about their outlook on retirement (vs
60% of those without).
Get more retirement
insights
For Canadians interested in learning more about the latest
changing retirement trends and what steps they can take to be more
resilient, tax and retirement experts Peter
Bowen and Michelle Munro will be providing their insights
on this year's results across Fidelity platforms:
- FidelityConnects webcast with Peter
Bowen and Michelle Munro with
podcast episode to follow
- Written commentary on Fidelity Canada social media channels,
and on Fidelity.ca.
Journalists and researchers are welcome to contact Fidelity for
more detailed briefings on the report's insights.
About the 2024 Fidelity Retirement
Report
In its 19th consecutive year, the annual Fidelity
Retirement Report focuses on how Canadians near, and already in,
retirement are approaching the next stage of their lives. The goal
is to share trends and insights on the complex topic of retirement
planning and help financial professionals and Canadians be better
prepared for retirement. This study was fielded between January 9 and January 23, 2024. A total
number of 2,000 Canadians were surveyed (49% male, 51% female),
with a median age of 62. A disproportionate sample of pre-retirees
and retirees was surveyed to allow for regional and gender
analysis. The results were then weighted to reflect the national
proportionate distribution of those 45 years of age and older.
Total sample results are accurate to +/- 2.31 percentage points, 19
times out of 20.
The inaugural Fidelity Retirement Survey was in 2005, and every
year since then Fidelity has been providing insights into the
attitudes and behaviour of Canadian pre-retirees and retirees.
For more information about the 2024 Fidelity Retirement Report,
visit fidelity.ca/retirement.
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 trusted investment
portfolios to help them reach their financial and life goals.
As a privately-owned company, our people and world class
resources are committed to doing what is right for investors and
their long-term success. Our clients have entrusted us with
$235 billion in assets under
management (as at April 18, 2024) and
they include individuals, financial advisors, pension plans,
endowments, foundations and more.
We are proud to provide investors a full range of domestic,
international and global equity and income-oriented mutual funds,
ETFs, asset allocation strategies, managed portfolios, sustainable
investing products, alternative mutual funds and a high net worth
program. Fidelity is available through a number of advice-based
distribution channels including financial planners, investment
dealers, banks and insurance companies.
This information is for general knowledge only and should not be
interpreted as tax advice or recommendations. Every individual's
situation is unique and should be reviewed by his or her own
personal legal and tax consultants.
Commissions, trailing commissions, management fees, brokerage
fees and expenses may be associated with investments 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 may
not be repeated.
Find us on social media @FidelityCanada
www.fidelity.ca
Listen to FidelityConnects on Apple or Spotify
SOURCE Fidelity Investments Canada ULC