Canada ranks No. 15 among developed nations for retiree well-being, down from No. 10 in 2021, according to Natixis Investment Managers’ annual global retirement index.
The index, which provides an overview of the relative well-being and financial security of retirees in 44 countries across four indices, ranked Canada No. 11 in health, No. 12 in finances, No. 16 in quality of life and No. 27 in material well-being.
By comparison, Norway was ranked No. 1 this year, followed by Switzerland, Iceland, Ireland and Australia in the top five.
Read: Canada drops to No. 10 in retiree well-being global rankings: report
In addition, a survey of Canadian financial advisors found the biggest retirement planning mistakes Canadian investors are making include underestimating how long they’ll live (65 per cent), underestimating the impact of inflation (61 per cent), forgetting to factor health-care costs into retirement (60 per cent), not understanding sources of retirement income (51 per cent) and investing too conservatively (48 per cent).
“Retirement security challenges have come home to roost in 2022,” said Dave Goodsell, executive director of Natixis’ centre for investor insight, in a press release. “Inflation has been the long-sleeping giant of worries for retirees and is now at the apex of retirement security threats. The rate hikes the Bank of Canada and other central banks have implemented to quell inflation further compound the problem, creating short-term pain for retiree portfolios.
“Investment strategies, financial planning, employee benefits and policy considerations will all need to factor in a new funding equation that accounts for inflation, interest rates and increased longevity.”
Read: 58% of Canadian pre-retirees contributing to retirement savings: survey