Survey reveals gaps in experiences and preparedness of those aged 50 and older
Many Canadian retirees and pre-retirees have expressed their lack of preparedness for financial emergencies that may come in their retirement, data from a recent study has found.
The Ontario Securities Commission (OSC) has released its Profiles of Retirement study, an investor research survey which investigated the financial circumstances of Canadians who were aged 50 and older.
The survey found that both retirees and pre-retirees may not be prepared for financial emergencies that may occur in their retirement, with many respondents sharing that they were not financially prepared should they experience physical or cognitive decline.
While majority of retired Canadians said they were in a financially strong position, about 15 percent stated that they were in a poor financial position. Almost one third of them also said that their monthly retirement expenses were higher than what they expected, with nearly half of retirees saying that an unexpected event had significantly impacted their finances.
The survey also found that working Canadians who were over 50 may not retire as comfortable as those who were already retired. Nearly half of the respondents who were pre-retirees said that they had experienced an event leading up to their retirement that affected their ability to save.
Those with lower incomes were also more likely to have unexpectedly high expenses and did not have the resources to save and plan for their retirement.
The top three areas of concern for the respondents were power of attorney for property (60 percent of retirees and 43 percent of pre-retirees have not appointed one), trusted contact person (71 percent of retirees and 83 percent of pre-retirees have not appointed one), and unexpected costs (61 percent of pre-retirees have not considered unexpected costs in relation to health or long-term care in their retirement plans).
The Profiles of Retirement survey looked into the attitudes and expectations of retirees and pre-retirees, which were the fastest growing demographic in Ontario. It surveyed 1,500 Canadians who were aged 50 or older and included 878 retirees and 622 pre-retirees. The survey was conducted from March 1 to April 18, 2023.
