Many Canadians Not Emotionally Ready for Retirement
Investors Group launches online Retirement Readiness Quiz to allow Canadians to assess their own readiness.
Winnipeg, MB – January 30, 2006: Personal preparations for the transition from work to retirement may be problematic for approximately 1 in 3 working Canadians 45 years and older according to a new retirement readiness survey developed by Investors Group.
The survey shows that more than one third (37 per cent) of working Canadians approaching retirement are not well prepared for the change in lifestyle that follows retirement. By contrast, Canadians indicate they are better prepared for retirement financially than socially or emotionally. Approximately one-third (31 per cent) are well prepared for the financial aspects of retirement compared to just 4 per cent who say they are well prepared for the transition to retirement lifestyle.
The Investors Group survey, completed by approximately 600 working Canadians 45 years of age and older, contains questions selected to determine respondents' readiness in five categories – life/work balance, social network, health, financial readiness and retirement attitude. The same categories and questions make up the Investors Group Retirement Readiness Quiz which was also launched on the Investors Group web site at www.investorsgroup.com.
“The transition from work to retirement is one of the most significant lifestyle changes in our lives,” said Debbie Ammeter, Vice President, Advanced Financial Planning at Investors Group. “Retirement is all about freedom from working responsibility, but the flip side of freedom is that you are responsible for structuring your own activity, maintaining your network of friends, and developing connections beyond your immediate circle of friends.”
The survey revealed weaknesses in personal retirement readiness such as:
- Only 20 per cent of working Canadians 45 years and older have a strong commitment to activities outside of work.
- 30 per cent are not involved in activities outside work that give them an opportunity to make new friendships.
- 35 per cent spend less than 3 hours per week immersed in activities outside of work or passive entertainment such as reading or watching TV.
Most working Canadians 45 and over report they are making good progress at saving for retirement, and the closer they are to their expected date of retirement, the more likely they are to be better financially prepared. Among those who say they are 5 years from retirement, 74 per cent say they are either well prepared or on-track to being ready financially – but, among respondents who are more than 15 years from retirement, that drops to 55 per cent who say they are financially ready or on-track to being so.
The survey showed that, as Canadians approach their intended retirement date, in addition to being better prepared financially, they are more likely to read about retirement or attend retirement seminars. However, nearness to retirement does not have as significant an impact on other retirement readiness factors, such as involvement in activities outside work, the number of friends, or personal health.
“As we get closer to retirement, we need to do more than build up our retirement savings, we need to get ready for a new life after work; this too should not be left to the last minute,” Ammeter said. “It takes time to develop networks of friends and personal interests that will support a fulfilling retirement.”
The Investors Group Retirement Readiness Quiz at www.investorsgroup.com provides Canadians an opportunity to test their own readiness. Those who complete the survey will receive a personalized Investors Group Retirement Readiness Report Card.
“This is definitely not a financial calculator,” Ammeter said. “Retirees tell us that the most important factors to ensure a happy retirement are health, financial independence, friends and a passion for life. The Investors Group Retirement Readiness Quiz is designed to help individuals assess their personal readiness in these critical areas.”
Decima Research is Canada's fastest-growing full service public opinion and marketing research company, offering research-based advice to clients in the public, private and non-profit sectors, as well as large-scale data collection capabilities. Please visit us on the web at www.decima.com.
Investors Group founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of over 3,600 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and banking services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with over $103 billion in total assets under management.
| For more information contact: | |
|---|---|
| Ron Arnst Media Relations (204) 956-3364 ron.arnst@investorsgroup.com |
Bruce Anderson Decima Research (613) 230-2200 banderson@decima.com |
