Benefits June 17, 2008

Canadians Say Transition to Retirement not Easy

June 17, 2008 (PLANSPONSOR.com) - Fidelity Investments Canada ULC found that 39% of retirees polled reported that their transition into retirement was easier than they thought it would be - a 9% drop from the number who said the same last year.
Reported by

Peter Drake, Vice President, Economic and Retirement Research, Fidelity Investments Canada ULC, said in a press release that recent retirees could be feeling “a little less than secure” about their retirement. Forty percent of retirees reported they have continued to work after retiring.

When it comes to talking about how much they saved for retirement, one-in-four (26%) non-retirees and 32% of retirees said that, while they have thought about it, they have not discussed the amount they have saved for retirement with family members, friends, or their financial adviser. According to the press release, non-retirees who expect to fund their retirement from their own savings are most likely to discuss investment issues and questions with their financial adviser (60%) and then their family or friends (46%), and 55% are more likely to first talk about the amount of income they can expect in retirement with their financial adviser before their family members or friends (45%).

Only 23% of Canadians reported that they have a retirement income plan. However, the good thing is most Canadians with a retirement income plan indicated that their plans consider and plan for possible future heath care expenses, including stays in long-term care facilities; the impact of inflation; and the possibility that they will live longer than they average life expectancy.

The 2007/2008 Fidelity Canadian Retirement Survey shows that June, July and August are the months when the highest numbers of Canadians retire.

More than a third (36%) of retirees stated that they did not celebrate or mark their retirement with anything special. However, the majority of retirees did celebrate with company parties (31%), parties thrown by family or friends (18%), taking a special trip or vacation (14%), or starting a new hobby (12%).

One-in-seven retirees said they marked their retirement by meeting with their financial adviser.

The survey was conducted by online by The Strategic Counsel from November 27 to December 10, 2007, among a representative sample of 1000 adult Canadians 45 years and older.

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