Survey sheds light on Canadians' attitudes towards retirement products
A new survey conducted by Ipsos for Sun Life found that nearly half (46 percent) of Boomers do not plan to use guaranteed income retirement products and less than half (43 percent) of Millennials expressed an interest in learning about such products.
As the number of centenarians in Canada rises, reaching a record high with a 64 percent increase in the last decade, concerns about achieving financial security in retirement have become more pronounced.
“As Canadians live longer and as we enter a new era of rising interest rates, market volatility and increasing geo-political risks, traditional investments that Canadians previously relied on to build wealth are not as effective as they used to be,” the study says.
“For Canadians to preserve wealth and meet their retirement and estate needs, having a financial roadmap with a mix of guaranteed investment solutions has never been more important to build wealth and pass it on to the next generation.”
Oricia Smith, president at SLGI Asset Management Inc. and senior vice-president, investment solutions at Sun Life, notes the impact of inflation on the financial decisions of many Canadians. “We've all felt the effects of inflation, pressuring many Canadians to make decisions about how to retrench, reinvest and cut costs,” she says.
Addressing the gender gap
The survey also found a gender disparity in retirement planning, with only 12 percent of Boomer women owning at least one guaranteed income retirement product compared to 24 percent of Boomer men. Moreover, half of Boomer women (49 percent) do not intend to use such products, and 25 percent are unfamiliar with them.
Canadian women are projected to control over $4 trillion in assets by 2028, nearly double the $2.2 trillion that they currently control, according to data from Sun Life Global Investments. Smith underscores the importance of addressing the gender gap today.
“Women now have more money and influence than ever before which is why we need to reduce the gender gap across wealth, health, and protection,” Smith continues. “Women live longer, which means they will benefit from saving more. They also have unique financial considerations that are often overlooked such as career interruption, caregiving responsibilities, longevity, mental health, and the retirement savings gap.”
“With full-time employed women earning just 90 percent of what men make, we see the importance of building a stronger, more equitable and financially secure future to support the long-term wellbeing of Canadian women,” she adds.
The survey gathered data from 750 Millennials (aged 27-42) and 750 Boomers (aged 58-77) and was conducted between August 30 and September 1, 2023.
