The fourth annual survey of Canadian retirement plan members and Canadian retirees conducted by Manulife has found that a notable 47 per cent of retirees left the workforce sooner than anticipated – around age 59 on average – and these retirees were worse off than their counterparts who retired as planned. The survey also echoes others which suggest that Canadians with financial advisors and a plan fare better in retirement than those without.
The Manulife Financial Resilience and Longevity Report, based on interviews with 1,572 plan members and 523 retirees, further found that despite improvements in the economy since the company’s last retirement survey, conducted in April 2023, 41 per cent of workers today are nearly twice as likely to describe their finances as fair or poor. Only 19 per cent said their finances were very good or excellent. The report looks at financial resilience, top worries, investment attitudes and retirement preparedness across working-age generations and retirees.
Increased retirement readiness
Of those surveyed, only 33 per cent had completed a formal and comprehensive retirement plan; 41 per cent said they had a financial advisor. Those with both report having better financial situations and increased retirement readiness, Manulife adds in a statement about the publication’s release.
“Nearly three quarters of respondents who worked with an advisor reported they were in a good financial situation, while only about half of those who didn’t have an advisor considered themselves to be in a good financial situation,” they state. As well, 77 per cent with a retirement plan felt good about their financial situation compared to only 51 per cent of those without a plan who said the same.
Notably, however, half said they wouldn’t use sources of financial planning and advice if there were an associated cost; only one in three said they would be willing to pay for an in-person consultation.
