SOURCE: Rogers Group Financial

June 21, 2016 03:00 ET

Horizons Retirement Report Surveys Canadians on the Realities of Retirement

VANCOUVER, BC--(Marketwired - June 21, 2016) - Clay Gillespie, Managing Director of Rogers Group Financial, commissioned Concerto Marketing to nationally survey retired Canadians and Canadians approaching retirement.

The results:

  • The major concerns of those approaching retirement include health and fitness, market volatility, having enough money, inflation levels and not getting bored, in that order.
  • 20% of Canadians expect to have debt of $50,000 or higher when they retire.
  • Canadians tend to be very optimistic about their prospects for quality of life in retirement, with 97% expecting the retired life to be "better than" or "about the same" as the life of an average retired Canadian.
  • Additionally 73% of Canadians describe themselves as being at least reasonably familiar with investing in the types of investments available. However, a small test on financial literacy seems to suggest otherwise.
    1. What happens to bond prices when interest rates go up? Answer -- they decline -- 46% answered correctly.
    2. What is the maximum CDIC coverage for GICs? Answer -- $100,000 -- 41% answered correctly.
    3. How much of a realized capital gains is taxed in Canada? Answer -- 50% -- 50% got this correct.
    4. Which one of GICs, Canadian equity or money market accounts performed best in the past 10 years in Canada? Answer -- Canadian Equity -- 52% of the respondents got this correct.
  • We asked if Canadians had to reduce their living expenses after they retire, the most likely lifestyle change they would make would be to downsize to a smaller home. Moving in with an adult child was the least likely lifestyle change.
  • Lastly, when we asked the retirees for advice for those still planning for retirement, they said to be realistic with finances and plan ahead.

"It is very concerning that Canadian overestimate their knowledge on financial topics. We have been during this survey for 6 years and the results have not improved," remarked Clay Gillespie.

"I don't think future retirees understand that carrying debt into retirement is very risky. It can dramatically reduce their standard of living if interest rates increase," commented Clay Gillespie.

Click to view the complete survey

About Rogers Group Financial

Rogers Group Financial is an independent, Vancouver-based financial advisory firm. Our group of professionally-qualified financial advisors and portfolio managers combine strategic thinking with independent advice to offer our clients custom financial plans that meet their unique circumstances.

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