Females are less positive about their financial health in retirement
However, older/retired Canadians are less concerned
TORONTO, May 5 /CNW/ - While this time last year, Canadians were
beginning to f
eel the economy was improving after the downturn, the most recent
results of the Russell Financial Health Index show a slight shift
towards greater concern about retirement, indicating that Canadian
investors are feeling somewhat unsettled, by recent global events.
The Russell Financial Health Index -- an online calculator that gauges
the overall financial health of Canadian investors -- decreased to
48.10 in the first quarter of 2011 from 51.12 in the first quarter in
2010. However, this number is only marginally down from the last three
months of 2010, when the Index was at 48.51,
"We are encouraged that much of the global economy continues to
transition from recovery to expansion, and we are seeing increasingly
stronger fundamentals," said Keith Pangretitsch, Director of National
Sales at Russell Investments Canada.
"Nonetheless, recent Black Swan Events, such as Japan's earthquake and
nuclear crisis , as well as, the ongoing crisis in the Middle East,
seem to be giving some Canadians pause."
What is particularly noteworthy in the first quarter of this year, is
the shift in sentiment about what is worrying Canadians as they think
about retirement. In Q1 2011, Canadians were more concerned about:
Reducing debt or borrowing
Family needing financial help
Reducing fixed costs for greater flexibility
The financial impact of a partner/spouse's death
By comparison, in the fourth quarter of 2010, Canadians were more
worried about leading an active and healthy lifestyle in retirement and
having a reliable source of income for their desired retirement
One segment of respondents that wasn't as concerned this quarter were
older or retired Canadians, who exhibited a more positive attitude
about their financial health. "While this seems counter intuitive, it
may be related to their more experienced and 'settled' state in these
unsettled times," according to Mr. Pangretitsch.
Also of note was the fact that the need for a reliable, trustworthy
professional advice reached an all time high level of importance.
"While having reliable, trustworthy professional advice has always been
a fairly important and constant component that Canadians consider as
part of their financial health in retirement, this quarter investors
are telling us it has taken on added importance," said Mr.
Pangretitsch. "During these uncertain times, it is hard to predict when
and where shocks to the market will come from, but when they do occur,
having broad diversification within your investment portfolio is the
best defence against these macro-shocks."
About the Russell Financial Health Index
The Russell Financial Health Index gathers its data from a confidential
web survey, which takes approximately five minutes to complete. Based
on a user's answers, a Financial Health Score is assigned, which can be
measured against the scores of other Canadian investors who have used
Each score is a result of analyzing variables that include physical
health, personal finances, unexpected events and financial planning.
Respondents are also asked questions related to how prepared they feel
to ride out changes in their long term investment performance before
and during retirement.
Findings from the Index will be used to assess and report findings, on a
quarterly basis, about how Canadians perceive their financial health,
as they deal with different economic environments and changes in their
About Russell Investments
Founded in 1936, Russell Investments is a global financial services firm
that serves institutional investors, financial advisers and individuals
in more than 40 countries. The firm has C$154 billion in assets under
management (as of December 31, 2010) in its mutual funds, retirement
products, and institutional funds.
Russell Canada was recently named the #1 fastest growing money manager
in Benefits Canada's 2010 Top 40 Money Managers Report. For more
information about how Russell helps to improve financial security for
people, visit us at www.russell.com/ca.
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is a publication of Russell Investments Canada Limited and has been
prepared solely for information purposes. It is made available on an
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SOURCE Russell Investments Canada Limited
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