Canadians think $1 million is how much they need for retirement: Fidelity

New research from Fidelity Canada, reported on by CP24, has found that most of us believe we need $1 million “to retire comfortably.”

This marks the 20^th year Fidelity Canada has compiled their retirement report, the broadcaster notes, with this year’s study being carried out in March, and involving 2000 respondents, who had a median age of 62.

So what did the report find? CP24 notes that “88 per cent of respondents agree retirement today is more complex than it was 20 years ago.”

Those who had not retired (and were 45 and older) “believe they need at least $1,020,000 to achieve a comfortable retirement – more than double the amount 20 years ago,” the article continues.

By contrast, the article continues, “in 2005, the same age group felt they needed $447,000 to retire, which equates to $685,000 in 2025.”

Interestingly, CP24 reports, those already retired feel a little better about things than those yet to receive the golden handshake. A total of “81 per cent of retirees feel positive about retirement, while only 59 per cent of pre-retirees feel positive,” the article adds.

And most felt that some sort of semi-retirement approach could be the answer for them – “85 per cent agree retirement is about transitioning to flexible work arrangements or passion projects rather than stopping work completely,” CP24 notes.

A concern for those surveyed – in addition to having enough to live on in retirement – was ensuring “the financial security of the next generation” before they pass on.

“People are looking to have a more expensive retirement. With that we’re thinking travel as well as people understanding that they’re living longer and the third piece is that people are also helping launch the next generation so supporting their adult children,” Michelle Munro, Fidelity Investments Canada’s tax and retirement research director, tells CP24.

They are also worried about the state of the world’s finances, the article adds.

“Inflation, current turmoil in world politics and poor economic growth were cited as the main concerns for Canadians, according to the report. Uncertain times can affect pre-retirees, who are still in a period of accumulating wealth to support their retirement,” the article tells us.

The prospect of rising living costs had 46 per cent of respondents saying, “they might postpone retirement to later than planned,” CP24 notes. “In 2005, the average age of retirement was 61, which has risen to 65 in 2025. Only 26 per cent of current pre-retirees plan to retire under 65,” the article adds.

Those respondents with “a financial advisor and written financial plan” felt more prepared than those without, the article notes. A final thought in the article is that “women and those not born in Canada had a less positive outlook on their retirement.”

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