Canadians divided on outlook for retirement

Pre-retirees in the 45 to 54 age range expressed the greatest concern, with 41% expecting their retirement to be worse than previous generations and only 26% expecting it to be better. Pre-retirees ages 18 to 24 showed more optimism, with 37% holding a better outlook for retirement.

When asked how they would characterize the stress and anxiety that comes from thinking about their retirement savings and investments, respondents ages 18 to 24 and those age 65 and over indicated the lowest levels of stress, with 40% and 45%, respectively, citing that their retirement savings and investments do not cause any stress or anxiety. Those indicating the highest levels of stress were respondents ages 45 to 54, with 78% indicating at least some level of stress and 38% labelling this stress as moderate or significant.

“It was interesting to see that the highest level of anxiety peaked 11 to 15 years before retirement, indicating that people begin thinking about their retirement income strategies earlier than expected,” says Michael Doshier, the company’s vice-president of retirement marketing.

The survey also uncovered some potential missed opportunities for investors based on the vehicles that make up their retirement savings plan. Specifically, of the 22% of Canadians who identified guaranteed investment certificates and money market funds as products that make up part of their retirement plan, half claim these investments are the primary (22%) or secondary (29%) vehicles held in their retirement plan.

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