A new report finds that most Canadian retirees are financially supporting their adult children, which they say is having a negative impact on their own finances.
According to Fidelity Investments Canada’s annual retirement According to the 2024 report, 59 percent of retirees plan to help their non-student adult children with day-to-day expenses and big expenses like home purchases, weddings, and even education savings for their grandchildren. Let’s report.
The report says that 82 percent of retirees indicate that inflation Retirement is having a negative financial impact on them. the cost of living It’s also having an impact on people’s ability to plan for retirement, as 43 percent of pre-retirees say they are delaying their planned retirement because of the cost of living.
“Achieving your retirement dreams is possible with a strong plan,” Peter Bowen, vice president of tax and retirement research at Fidelity, said in a statement Tuesday.
“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 envisioned.” Are. In this year’s report, we found that planning for additional expenses for loved ones and incorporating them into financial planning resulted in added value.
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The report said Canadians “remain resilient and optimistic” about retirement despite these challenges. It says 88 per cent of Canadians with a written financial plan feel financially prepared for retirement, compared to 56 per cent of those without a written financial plan.
However, it adds that only 27 per cent of Canadians have a written financial plan, with 85 per cent of those saying they have worked with a financial advisor to create a plan.
The approach to retirement varies by province.
Quebec residents are most likely (34 per cent) to have a written financial plan for retirement, compared to the average (26 per cent) for Canadians living elsewhere.
Meanwhile, Canadians living in the Prairies (50 per cent) and BC (49 per cent) are more likely to be working in some capacity in their retirement than Canadians living elsewhere (41 per cent on average).
The report said 87 percent of women with a written financial plan felt positive about their outlook for retirement, compared to 60 percent of women without a written financial plan.
The report comes as cost of living pressures remain high across the country. Whereas overall inflation has come down significantly from its 8.1. Percentage in June 2022, The cost of food, shelter and gas continues to rise,
The study was conducted between January 9 and January 23, 2024. A total of 2,000 Canadians were surveyed (49 per cent male, 51 per cent female), whose average age was 62 years. A disproportionate sample of pre-retirees and retirees were surveyed to allow regional and gender analysis. The results were then weighted to reflect the national proportional distribution of people aged 45 and older. The overall sample results are accurate to +/- 2.31 percentage points, 19 out of 20 times.
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