Welcome!

News Feed Item

Canadians Divided on Outlook for Retirement Happiness

While vast majority are looking forward to retiring, survey finds generational split on expectations

  • Among respondents who have not yet retired, 31 per cent believe their retirement will be better than previous generations, 36 per cent believe it will be worse and 32 per cent believe it will be similar.
  • Respondents aged 45 to 54 experience the greatest amount of pessimism about what retirement holds for them compared to previous generations, and experience the highest levels of stress when thinking about their retirement savings and investments. 
  • While "retire later" was the top response (66 per cent) among pre-retirees who were asked what they would do if unable to retire as planned due to insufficient income, nearly one-third (29 per cent) of retired survey respondents did not retire by choice.

TORONTO, Feb. 5, 2014 /CNW/ - Franklin Templeton's 2014 Retirement Income Strategies and Expectations (RISE) survey found stark differences among Canadians both in their pursuit of happiness in their retirement years and the stress and anxiety that comes from thinking about their retirement savings and investments.  The survey, conducted in January 2014, polled Canadians aged 18 and over.

When asked how they believe their retirement will differ from previous generations, Canadian pre-retirees were pretty evenly split, with 31 per cent of respondents indicating that they believe it will be better, 36 per cent indicating that they believe it will be worse, and 32 per cent believing it will be similar. Pre-retirees in the 45 to 54 age range expressed the greatest concern, with 41 per cent expecting their retirement to be worse than previous generations and only 26 per cent expecting it to be better. Pre-retirees aged 18 to 24 showed more optimism, with 37 per cent holding a better outlook for retirement.

"The survey findings highlight some very real concerns and uncertainty among Canadians over what they can expect in retirement," said Philip Bensen, senior vice president, head of National Sales - Canada for Franklin Templeton Investments. "A variety of factors could be contributing to those concerns, including the increasing inability of government pensions and programs such as Old Age Security, to contribute to a secure retirement; lingering fears from the 2008 recession; and - for the millennial generation in particular - fears about employment in both the short- and long-term, and the impact that will have on their ability to contribute to RRSPs at an early age."

When asked how they would characterize the stress and anxiety that comes from thinking about their retirement savings and investments, respondents aged 18 to 24 and those aged 65 and over indicated the lowest levels of stress, with 40 per cent and 45 per cent, respectively, citing that their retirement savings and investments do not cause any stress or anxiety. Those indicating the highest levels of stress were respondents aged 45 to 54, with 78 per cent indicating at least some level of stress and 38 per cent labelling this stress as moderate or significant.

"It was interesting to see that the highest level of anxiety peaked 11 to 15 years before retirement, indicating that people begin thinking about their retirement income strategies earlier than expected," said Michael Doshier, vice president of Retirement Marketing for Franklin Templeton Investments. "When asked what they expect to be their top concern during retirement, pre-retirees aged 45 to 54 selected running out of money as well as concerns about health and medical issues—with each representing the top concern of about a third (33 per cent) of respondents in this age range.  In the 55 to 64 pre-retiree age range, health and medical issues (39 per cent) began to exceed running out of money (32 per cent) as the top concern."

While "retire later" was the top response (66 per cent) from Canadian pre-retirees who were asked what they would do if unable to retire as planned due to insufficient income, nearly one-third (29 per cent) of retired survey respondents indicated that they did not retire by choice.

The survey also uncovered some potential missed opportunities for investors based on the vehicles that make up their retirement savings plan. Specifically, of the 22 per cent of Canadians who identified GICs and Money Market Funds as products that make up part of their retirement plan, half (51 per cent) claim these investments are the "primary" (22 per cent) or "secondary" (29 per cent) vehicles held in their retirement plan - a concern given that, in today's rate environment, such investments tend to yield negative results after inflation is taken into account.

"There is a lot of uncertainty and concern among Canadians over what to expect in retirement and what can be done now to plan and prepare for it," said Doshier. "We're all in pursuit of retirement happiness and the best way to get there is to work with a financial advisor to help develop a tangible plan that reflects where you are and the appropriate investments get to where you want to be. With a clear plan in place, Canadians can focus on what's important to them now, while having some peace of mind about what awaits them in their retirement years."

Franklin Templeton's Retirement Income Strategies and Expectations (RISE) survey was conducted online among a sample of 2,014 Canadians ages 18 and older. The survey was administered from January -3 to 16, 2014 by ORC International's Online CARAVAN®.

For more information, please visit franklintempleton.ca or connect with Franklin Templeton on Twitter @FTI_Global and YouTube (FranklinTempletonTV).

About Franklin Templeton Investments
Franklin Templeton Investments Corp. is a wholly owned subsidiary of Franklin Resources, Inc. (NYSE: BEN), a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Franklin Mutual Series, Franklin Bissett, Fiduciary Trust, Darby, Balanced Equity Management and K2 investment teams. The San Mateo, CA-based company has more than 65 years of investment experience and over US$879 billion (C$933 billion) in assets under management as of December 31, 2013.

SOURCE Franklin Templeton Investments Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, will explore the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences betwee...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...