Sun. Jul 12th, 2020

Insurable Interest

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Canadians reducing retirement savings due to coronavirus: survey

1 min read

More than a third (40 per cent) of pre-retirees have a negative outlook on their life in retirement, the highest rates of negative retirement perception among survey respondents since 2014, according to the latest annual survey by Fidelity Investments Canada.

The same percentage said their salary or earnings have decreased due to the coronavirus pandemic. Among those negatively impacted, 50 per cent are reducing the amount of money they’re able to save and the amount they’re able to invest, compared to last year.

Read: Could coronavirus delay DC plan members’ expected retirements?

However, the survey, which polled nearly 2,000 Canadians aged 45 or above, also found 80 per cent of pre-retirees and 92 per cent of retirees with a written financial plan said they feel positive about their future life in retirement.

“Data shows Canadians near and in retirement are more negatively impacted by COVID-19 than the [2008/09] financial crisis,” said Peter Bowen, vice-president of tax and retirement research at Fidelity Investments, in a press release. “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.”

Read: The impact of coronavirus on DB pension funding status, asset mix

Read the full article at BenefitsCanada.com

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