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Two-thirds of working Canadians say their physical health is better than their financial health
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Canadians have established regular patterns of physical activity,
but are less proactive with their financial fitness
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WINNIPEG, Jan. 3 /- New research released today by Investors Group
shows that non-retired Canadians overwhelmingly say their physical health is
better than their financial health (67 per cent) - and many may be relying on
continued good health to enable them to keep working during their retirement
years.
From 'no-carb' diets to the increasing demand for herbal medications and
natural products, Canadians' desire for a healthier lifestyle is manifesting
itself in most aspects of daily life. Food companies and restaurants are
stepping up health and nutrition initiatives to meet consumer demand for
healthier products. And, in addition to eating well, 7 in 10 Canadians claim
they have established a regular pattern of physical activity, according to the
Canadian Fitness and Lifestyle Research Institute.
But less than 5 in 10 are proactive with their financial fitness - only
46 per cent of Canadians consult an advisor for help with managing their
finances, according to the national poll conducted for Investors Group by
Decima Research.
"Canadians are increasingly focused on improving their physical fitness,
but it is equally important to establish healthy habits to ensure sound
financial fitness," said Debbie Ammeter, Investors Group's Vice President of
Advanced Financial Planning Support. "Physical health and financial health are
not mutually exclusive - both are essential to longevity and a prosperous
future."
Canadians counting on good health to work in retirement
Many Canadians may be counting on their good physical health to support
their intention to work in retirement. The poll found that 58 per cent of all
working Canadians plan to do some sort of paid work in retirement, while only
23 per cent of current retirees surveyed did the same after they retired.
Canadians in the "baby-boom" generation have the strongest intentions to
remain in the workforce, with 65 percent of respondents in the 45-64 age group
saying they plan to do some sort of work in retirement.
But working Canadians may want to pay mind to the lessons learned by
retired Canadians. While only 8 per cent of non-retired Canadians say they
have a health condition that might prompt them to retire earlier than they
would prefer, 21 per cent of retired Canadians said they encountered a health
condition that required them to retire early.
"As we age, health and other complications can come into play. It is
critical to remember that you may not be able to work as long as you hope or
plan to," cautioned Ammeter.
Working in retirement about more than money
The majority of working Canadians (56 per cent) agreed that they think
they would not have enough money to live on if they stop working entirely, but
maintaining social connections and gaining new experiences also appear to be
on the minds of Canadians as they envision their retirement lifestyle. Thirty
per cent of survey respondents said the opportunity to maintain connections
with other people was a benefit of working in retirement.
The research showed interesting gender differences: Men are more likely
to say the satisfaction of making a contribution/having something to do is the
greatest benefit of working in retirement (46% vs. 26% of women), while women
are more driven by the desire for social connection to continue working in
retirement (37% vs. 26% of men). Women were also more likely to say money is
an important motivator for working in retirement (34% vs. 28% of men). In
addition, women are more likely to say their physical health is better than
their financial health (70% vs. 64% of men).
"While work in retirement is certainly a great way to maintain and
enhance social connections, we prefer the decision to be a choice rather than
a necessity. Having a financial plan for retirement can help ease the pressure
as well as help make choices that best suit each individual," added Ammeter.
Planning for the money you want
The research found that the higher their household income, the more
likely Canadians are to work with a financial advisor. "Professional financial
advice is not something reserved for the wealthy," advised Ammeter. "You do
not just use an advisor to manage the money you've got; you work with an
advisor to plan for the money you want."
The research confirmed that financial planning isn't being done until
late in the game. While Canadians on average say they think they'll retire at
age 61, forty-two per cent of retired respondents say they did not start
thinking seriously about retirement until after age 50. "But late is better
than never," added Ammeter. "There are still important decisions to be made
that will benefit from advice - decisions around pensions and accessing
retirement income in a tax effective way, for example."
And it appears the proof is in the pudding. Research shows advisors are
seen to be adding tremendous value - 76 per cent of those who are not retired
and 80 per cent of those who are retired said working with an advisor has
helped them be more prepared for a comfortable retirement.
Government programs more important for retirees
When it comes to funding their retirement, Canadians are overwhelmingly
counting on RRSPs and government pensions as a source of income, but those
currently in retirement are counting more on government programs. Canadians
are also relying on employer-sponsored pensions, but many are lacking
knowledge about their plans. Of those with a plan, 51 per cent of non-retired
and 45 per cent of retired respondents did not know if their plan was defined
benefit or defined contribution.
"Now more than ever, Canadians are charged with being engineers of their
own long-term financial security," said Ammeter. "Professional advice and
advance preparation for retirement are key."
The Decima data were gathered between October 20th and October 30th,
2006, through Decima eVox, the company's large national online panel. Results
are based on a sample of 2,170 Canadians, and the corresponding margin of
error is 2.2%, 19 times out of 20. |
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