Nearly two-thirds (62 per cent) of Canadian pre-retirees say the rising cost of living is preventing them from retiring when they’d like to, up from 56 per cent in 2021, according to a new survey by Fidelity Canada.
The survey, which polled more than 1,900 Canadians aged 45 and older, found 55 per cent said a lack of savings is holding them back from retiring, while 45 per cent cited the performance of their investments.
In terms of the main risk to personal financial security, two-thirds (66 per cent) of respondents cited inflation, followed by health-care costs (58 per cent), withdrawal rate (54 per cent) and longevity (53 per cent).
Read: Half of U.S. employees say they’ve stopped or reduced retirement savings amid rising inflation: survey
Only 23 per cent of respondents said they have a written financial plan. Among those with a plan, 83 per cent said they feel financially prepared for retirement, compared to 47 per cent of those without a plan.
And while six in 10 (60 per cent) respondents said they’ll likely continue working to some degree in retirement, only 17 per cent of current retirees said they’re doing some form of part-time work.
“With stubborn inflation, market volatility and global uncertainty, it’s not surprising that Canadians are anxious about their future and their retirement,” said Peter Bowen, vice-president of tax and retirement research at Fidelity Canada, in a press release. “However, Canadians continue to demonstrate the value of advice and planning; those with financial plans feel more secure and prepared for retirement. Those without a plan should seriously consider the benefits it could have for their overall well-being.”
Read: 81% of U.S. employees concerned about retirement readiness amid inflation: survey