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.

Monday Monitor: Have Interest Rate Hikes Had An Impact?

As the NAFTA 2.0 trade deal (USMCA) is finalized and the trade uncertainty is resides, it still appears that successive increases in interest rates are already having an impact in key sectors such as housing and autos. Many investors are asking — where are we as it relates to the next steps of economic growth and market expectations?

Enjoy a thoughtful and thorough economic analysis from our partners at NBF Economics HERE.

Unrealistic Views Of Risk and Return

Do investors have a realistic view of risk and return? As we recently pass the 10th anniversary of the Financial Crisis of 2008 with significant volatility in the financial markets, insights about investor sentiment were surveyed. Why is sentiment important? Simply put, it can move markets. Here are some of the highlights of the research by the Investment Managers at Natixis.

How Do Investors Feel About Risk And Their Investments In 2018?

Some of the highlights that reveal myths and realities of investing from the recent survey include:

  • 71% feel more financially secure than they did during the financial crisis
  • 63% say index funds are less risky (they’re not)
  • 70% don’t think the world itself is a more secure place

How do you feel about your investment expectations? If you wish to learn more, enjoy the Natixis report and as always feel free to discuss your perspectives or second opinions with your Hampton Wealth Investment Advisor.

Economic Outlook: The World Is Turning a Corner

For our clients who enjoy a global view of economic trends, we take a deep dive into the current financial conditions with our partners at National Bank Financial to determine world economics is turning a corner. Various economic indicators most notably strong U.S. and Canadian ‘Job numbers’ in March 2017 beat expectations on both sides of the border. The robust employment statistics endorse the forward looking equity markets with the Dow Jones Industrial Average (DJIA)* clinching a historic benchmark of 20,000 in late January 2017 only to quickly test 21,000 on March 1st, 2017. Many investors are asking what does this mean?

“After a disappointing 2016, the global economy seems to have turned the corner. A resurgence in economic activity in the advanced world, led by the U.S., is being complemented by an apparent rebound in China which is lifting emerging markets. That said, major uncertainties threaten to derail global growth including increased trade protectionism, elevated debt levels and political instability in places such as Europe.”

Enjoy the detailed discussion of current financial conditions in the “Monthly Economic Monitor” including the rebound of the Canadian Energy sector from our partners at National Bank Financial Markets, A division of National Bank of Canada.

Monthly-economic-monitor March 2017

*The DJIA is an equity index that is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. The DJIA was invented by Charles Dow back in 1896. It includes Apple to Walmart today.