How is retirement changing?

As the majority of the population is moving towards or in retirement typically defined as age 65 or older, we are understanding how retirement is changing. The recent Sunlife 2019 survey offers some warning signals that find retirement is not all that it is cracked up to be.

November 2019 Sunlife survey offers some sobering statistics:

  • Nearly half (47%) of working Canadians believe there is a serious risk they could outlive their retirement savings
  • 44% of working Canadians expect to be employed full-time at the age of 66
  • Nearly a quarter (23%) of Canadian retirees describe their lifestyle as ‘frugal’
  • 72% say their retirement is not what they were expecting
  • Among working Canadians, 75% don’t have a financial plan

The Sunlife survey is an interesting contrast to the recent BMO confidence survey by Canadians on the future of their finances.

Is Investor Confidence Connected To Generational Differences?

A majority of Canadians (80%) feel “confident” about their finances — and yet relatively few are confident about investing, according to a survey from BMO InvestorLine.

The online survey, which polled 1,000 adult Canadians from Oct. 12 to Oct. 22, found that only 29% said they were “very knowledgeable” about investing. More than half of respondents (53%) said investing made them feel “stressed.”

Clearly investment advice is an integral part of a lack of confidence Canadians feel. Investment planning is an integral part of any retirement plan.

Counting pennies: the frugal facts

Is there a connection between the 75% of Canadians who don’t have a financial plan and the 80% who feel confident about their finances? The Advisors at Hampton Securities are disciplined to ensure they have an annual review with clients. The value of this approach is that it significantly reduces the financial stress of their clients and encourages more ongoing engagement in their financial future. If you are nearing retirement or in early retirement the value of having a plan or an investment portfolio review can be helpful however you define your retirement.