‘By seeking financial advice and writing down an action plan, Canadians can feel better and navigate the uncertainty’
Two in five (40 per cent) pre-retirees have a negative outlook on their life in retirement – the highest rate of negative retirement perception among Canadians since 2014, according to a new report from investment management firm Fidelity Investment Canada.
Forty per cent of Canadians also indicated their salary or earnings had decreased due to the COVID-19 pandemic, and 50 per cent of them are reducing the amount of money they are able to save and the amount they are able to invest compared to last year.
“Data shows Canadians near and in retirement are more negatively impacted by COVID-19 than the Great Financial Crisis,” says Peter Bowen, vice-president of tax and retirement research at Fidelity. “However, we are in this together and there is help. By seeking financial advice and writing down an action plan, Canadians can feel better and navigate the uncertainty.”
The good thing is 80 per cent of pre-retirees and 92 per cent of retirees with a written financial plan felt positive about their (future) life in retirement, found the survey of 1,929 Canadians aged 45 and older conducted online between May 20 and May 30, 2020.
And of those who indicated they had a written financial plan, 85 per cent also indicated they had worked with a financial advisor to build it.
Meanwhile, 79 per cent Canadians are concerned about continued recessionary times next year, compared to 55 per cent who said they feared an economic downturn in a December 2019 survey, according to a separate report from CIBC. Many (63 per cent) say they have significantly cut down on discretionary spending and more than half (55 per cent) agree they need to get a better handle on their finances this year.
Also, 84 per cent Canadians say their mental health concerns have worsened across 15 factors since the onset of the COVID-19 pandemic but few are seeking help, according to a separate report from the Conference Board of Canada and the Mental Health Commission of Canada (MHCC).
Meanwhile, younger workers are suffering disproportionately amid the COVID-19 pandemic compared to older workers, according to another report from the International Labour Organization (ILO).