Yet, nearly 40% of Canadians don't celebrate or mark their
retirement...or even talk about it...
TORONTO, June 17 /CNW/ - A new survey from Fidelity Investments Canada
ULC finds that summer time is retiring time for Canadians. The third annual
2007/2008 Fidelity Canadian Retirement Survey shows that June, July and August
are the months when the highest numbers of Canadians retire. However, this
year's survey shows that more retirees are finding retiring is getting harder.
"Fidelity's research shows that when it comes to the timing of their
retirement, the summer months are the tops for Canadians. When you consider
the relatively short summer Canada enjoys, it seems that retiring Canadians
want to take full advantage of the summer months by not spending them at
work," said Peter Drake, Vice President, Economic and Retirement Research,
Fidelity Investments Canada ULC.
While Fidelity's research shows that more Canadians retired in the summer
months, for almost four-in-ten Canadians celebrating their retirement
certainly was not their first priority. Thirty-six per cent of retirees stated
that they did not celebrate or mark their retirement with anything special.
This is partially explained by the 40% of retirees that report they have
continued to work after retiring. Luckily, the majority of retirees did
celebrate with company parties (31%), parties thrown by family or friends
(18%), taking a special trip or vacation (14%) or starting a new hobby (12%).
One-in-seven retirees marked their retirement by meeting with their financial
"Retiring is a big step for many Canadians and many will want to do
something special that marks the end of their working life and the start of
the next phase of their life. However with so many Canadians planning on
working in their retirement, they might get to celebrate a few times," said
Transitioning into retirement is getting more difficult
The high numbers of Canadians not celebrating their retirement can also
be explained by survey results showing that retiring became a little more
difficult this year. Compared to last year's survey, fewer retirees report
that their transition into retirement was as easy as they thought it would be.
In the 2006/2007 Fidelity Canadian Retirement Survey, 48% of respondents
reported that their transition into retirement was easier than they expected.
This year, only 39% of retirees reported that their transition into retirement
was easier - a full nine per cent drop over last year.
"Considering the volatility of the financial markets and other investment
issues investors faced in late 2007 and early 2008, many recently retired
Canadians might be feeling a little less than secure about their retirement,"
Talking about retirement savings and income - first with financial
advisor and then family?
When it comes to talking about how much they saved for retirement,
Canadians can be tight-lipped. One-in-four (26%) non-retirees and 32% of
retirees report that, while they have thought about it, they have not
discussed the amount they have saved for retirement with family members,
friends or their financial advisor.
The survey results also show that non-retirees who expect to fund their
retirement from their own savings are most likely to discuss investment issues
and questions with their financial advisor (60%) and then their family or
friends (46%). Financial advisors are also the most popular resource for
Canadians to discuss the amount of income they can expect in retirement. Over
half of non-retirees who will fund their retirement from their own savings
(55%) are more likely to first talk about these issues with their financial
advisor before their family members or friends (45%).
"Getting Canadians to talk about their retirement savings is the first
step, planning for their retirement is the next," said Drake. "Talking about
retirement and what it means to you and your family can be difficult. But not
talking, or worse, not planning for retirement can make things even more
While many Canadians have a plan for how they are going to accumulate
their retirement savings, very few have a plan for where their income will
come from once they stop working. Matching last year's result, only 23%
Canadians report that they have a retirement income plan. On a positive note,
most Canadians with a retirement income plan report that their plans consider
and plan for possible future heath care expenses, including stays in long-term
care facilities, the impact of inflation and the possibility that they will
live longer than they average life expectancy.
"Having a written retirement income plan that shows where your income
will come from in retirement, plus plans for future life events will give you
a good sense of security to handle the ups and downs of the financial
markets," added Drake.
About the Fidelity Canadian Retirement Survey
The 2007-2008 Retirement Survey was conducted by The Strategic Counsel.
The survey was conducted online from November 27 to December 10, 2007 among a
representative sample of 1000 adult Canadians 45 years and older. In order to
participate in the study, respondents were required to be the person in the
household with the main responsibility or, shared the responsibility for
savings and investing decisions.
The results were weighted to ensure the sample's regional and
age/household income composition reflects that of the actual Canadian
population of those 45 years and older, according to the 2001 Census data.
Results for the total nationwide proportionate sample of 1000 are considered
accurate to within +/- 2.6 percentage points, 19 times out of 20. The margin
of error will be larger within regions and for other sub-groupings of the
About Fidelity Investments Canada ULC
Fidelity Investments Canada ULC is the country's eighth largest mutual
fund company and part of the Fidelity Investments organization of Boston, one
of the world's largest providers of financial services. In Canada, Fidelity
manages a total of $49 billion in mutual fund and corporate pension plan
assets. It offers Canadian investors a full range of domestic, international
and income oriented mutual funds. Fidelity funds are available through a
number of advice-based distribution channels including financial planners,
investment dealers, banks, and insurance companies.
Fidelity Investments also administers defined contribution plans and
manages defined benefit assets on behalf of corporate clients across Canada.
Fidelity is a proud supporter of the Boys and Girls Clubs of Canada and we are
dedicated to helping young Canadians realize their full potential as
productive, responsible and caring citizens.
For further information:
For further information: Chris Pepper, Director, Media Relations,
Office: (416) 307-5388, Mobile: (416) 795-7762, Email: firstname.lastname@example.org