According to a press release, the index analyses the broad financial picture of Canadian households including workplace and individual savings, projected asset growth, future savings, projected government sources of income and pension benefits, expected retirement horizon and longevity.
Recent Fidelity research suggests that retirees should replace about 80% of their pre-retirement income; however, Canadian households are on track to replace only half of their pre-retirement income in retirement.
The overall 50% Index score for Canadians shows they are lagging behind individuals in other countries in their preparation for retirement. Similar studies conducted by Fidelity show that individuals in the U.S. (58%) and Germany (56%) are better prepared than Canadians.Index scores for the United Kingdom and Japan were 50% and 47%, respectively.
“By introducing the Fidelity Retirement Index, we hope to spark Canadians into action to start planning and saving for their future,” said Peter Drake, Vice President, Economic and Retirement Research, Fidelity Investments, in the press release.
Along with showing how Canadians are doing on a national scale, the index also measures the retirement preparations of working households across Canada.
For more information, visit www.fidelity.ca .