That was also reflected in a recent report by Fidelity, which found health issues, long-term illness, or disability among the top reasons why some retirees were unable to reach their ideal retirement lifestyle. Respondents to that survey also indicated they didn’t have enough money saved for that post-work phase, and were having difficulty navigating inflation and the rising cost of living.
“For many Canadians, retirement may also involve traveling, sports and fitness, or making a big dream purchase, leading to even more expenses in their early golden years,” Monteiro says.
The current economic backdrop of inflation and increasing costs of living has also tested Canadian workers’ resolve to invest and save for the long term. Those who decide to tap out of the stock market now might be doing it at the worst possible time, Monteiro says, pointing to the common pitfall of selling low out of panic.
“The good news is we actually have not seen that in general,” he says. “We saw a slight 3% decrease in voluntary contributions, and an 8% decline in one-time contributions. But that’s on a growth trend relative to what we saw in 2020.”
Within Sun Life’s group plans, Monteiro says withdrawals registered a slight uptick of 4%. Five per cent of plan members changed their fund selections, typically going into lower-risk funds, suggesting that any fears of a major flight to safety have yet to materialize.
