2021 IG Retirement Study: COVID Causing Canadians to Rethink Their Plans for Retirement
Health, family and home take on added importance as Canadians prepare for their next chapter
WINNIPEG, MB – February 18, 2021 – IG Wealth Management (IG) today released the results of a study that shows Canadians are rethinking their approach to retirement planning as a result of the COVID-19 pandemic.
According to the study, which was conducted by Pollara Strategic Insights for IG, almost half of Canadians who are not currently retired say the pandemic has made them rethink what their retirement will look like, and how they will get there. Further:
- 63 per cent report that they would now prefer to spend their retirement in their own home, rather than a retirement facility;
- half say the pandemic has made them prioritize being closer to family and remaining in Canada, rather than living abroad; and
- one-third of Canadians who are not retired feel the pandemic will cause them to delay their retirement.
“It’s understandable that the events of the past year have caused many Canadians to pause and re-think what their futures will look like, including their plans for retirement,” said Damon Murchison, President & CEO, IG Wealth Management. “Whether it’s staying in your current home for longer or re-evaluating how much healthcare coverage might be needed, these changing priorities can have a significant impact on your finances. This makes it all the more important to have a financial plan in place that includes a robust retirement component. And, perhaps just as critically, one that can evolve and be adapted to reflect your changing priorities.”
Thinking About Finances More Holistically
The study also revealed that most (88 per cent) of working Canadians reported being uncertain about the amount of money they will need during their retirement to cover monthly expenses. Other key findings included:
- 67 per cent now see a greater need for an emergency fund, both now and in retirement;
- half of Canadians are now considering getting their estate plans in order before they retire;
- two-fifths are thinking about the amount of healthcare coverage they will need in retirement; and
- 46 per cent believe they might need more money in retirement than they had originally thought.
“The key to feeling financially secure and confident in retirement is to have a game plan, both in terms of how you want to spend your retirement and the amount of money you’ll need to make it a reality,” stated Mr. Murchison. “We need to continue to focus on saving for retirement. However, working Canadians should also be learning about the various sources of income they may be able to draw on during retirement and be working with a financial professional to focus on other key dimensions of their retirement, whether it be insurance needs, tax strategies, estate planning or budgeting.”
Mr. Murchison noted that, at IG Wealth Management, advisors take a holistic approach to retirement planning. They look beyond RRSPs to consider all sources of income to help clients forecast their monthly income in retirement and provide guidance on complex tax and income sequencing issues as needed. Using advanced software, they can also build what-if scenarios and adjust financial plans quickly as needs evolve and circumstances change.
About IG Wealth Management
Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of Consultants located across Canada. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has approximately $103 billion in assets under management as of January 31, 2021 and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's leading diversified wealth and asset management companies with approximately $239 billion in total assets under management as of January 31, 2021.
About the Pollara Study
This study was conducted with an online sample of 1,508 adult Canadians and was conducted between January 29 and February 1, 2021. Results from a probability sample of this size could be considered accurate to within ±2.5 percentage points, 19 times out of 20. Results have been weighted on the basis of age, gender and region, using the latest StatsCan data, to be representative of the Canadian population as a whole.