'Canadians near and in retirement are more negatively impacted by COVID-19 than the Great Financial Crisis'
Many Canadians nearing retirement are not feeling good about their life after work, according to a survey.
Four in 10 (40 per cent) pre-retirees have a negative outlook about their life in retirement – the highest rate of negative retirement perception among Canadians since 2014, according to a report from Fidelity Investment Canada.
Forty per cent also indicated their salary or earnings had decreased due to the COVID-19 pandemic, with 50 per cent of these people reducing the amount of money they are able to save and the amount they are able to invest compared to last year.
"Canadians near and in retirement are more negatively impacted by COVID-19 than the Great Financial Crisis," says Peter Bowen, vice-president of tax and retirement research at Fidelity.
However, 80 per cent of pre-retirees and 92 per cent of retirees with a written financial plan say they feel positive about their life in retirement, found the survey of 1,929 Canadians aged 45 and older conducted online between May 20 and May 30, 2020.
Concerns about recessionary times
A separate survey by CIBC found 79 per cent of Canadians are concerned about continued recessionary times next year, compared to 55 per cent who said they feared an economic downturn in December 2019.
Many (63 per cent) say they have significantly cut down on discretionary spending and more than half (55 per cent) say they need to get a better handle on their finances this year, found the survey of 1,517 respondents.
The survey also found that 46 per cent of Canadians say the economic impact of the pandemic has adversely affected their finances while 47 per cent feel it will take more than a year to get their personal finances back on track.
Even before the pandemic, many Canadians worried about their finances for two hours each day, according to a survey by Scotiabank.
A survey back in March also found three-quarters of Canadians were experiencing financial stress due to COVID-19.