The firm's retirement report shows regional differences in readiness and planning
Most Canadian retirees say that inflation is negatively impacting their finances and 43% of pre-retirees may have to delay retirement due to the cost of living.
These are two key takeaways from Fidelity Investments Canada’s 2024 retirement report, which also reveals some regional variations in retirement readiness and planning.
While almost nine in ten respondents said that having a written financial plan helped them feel prepared for retirement versus 56% of those without one, the report shows that Quebecers are most likely to have a written plan (34%) than those in Canada overall (26%). Most (85%) of those with a written plan worked with a financial advisor to create it.
For those living in the Prairies and BC, doing at least some work in retirement is more likely with around half of respondents from each saying this compared to the 41% average across provinces.
The report also highlights the value of investing in mutual funds with 81% of those who do indicating that their investments are either holding steady or growing and their retirement income needs are being met. This contrasts with 59% of those who do not hold mutual fund investments.
Helping others
While their own living costs are paramount, 59% of retirees report helping their non-student adult children in retirement both with day-to-day expenses as well as big-ticket items like home purchases, weddings and even education savings for their grandchildren.
"Despite uncertain economic times, working with a financial advisor, developing a written financial plan, sticking to that plan, and especially staying invested can help Canadians live the retirement they envision,” said Peter Bowen, Vice President, Tax and Retirement Research, Fidelity. “In this year's report, we found that planning for additional expenses for loved ones and incorporating that into a financial plan stood out as adding value."
