Resilience, redefining success and thriving in retirement
The new study from Edward Jones Canada, in partnership with Age Wave, uncovers that today’s thriving retirees are redefining success in retirement by making resilient choices – providing a valuable model for Canadian Millennials. The summary of the insights can be found by visiting here.
MISSISSAUGA, ON, May 24, 2023 /CNW/ – Edward Jones Canada, in partnership with Age Wave, a thought leader on population aging, has released its third study on retirement that builds on previous findings further exploring how Canadians can improve retirement across the four pillars: health, family, purpose, and finances.
While retirees overwhelmingly agree (92%) that “preparation, flexibility, and willingness to adapt are key to success in retirement,” this new breed of retirees knows they will face challenges and are increasingly willing to make a wide variety of adjustments, trade-offs, and course corrections – something other generations can learn from.
“Making resilient choices is becoming more essential to pre-retirees and generations of future retirees who are not yet financially prepared to retire. In the face of new challenges faced by retirees, pre-retirees and even younger generations like Millennials, resilient retirement planning has never been more important,” says David Gunn, President of Edward Jones Canada. “Insight across generations can equip people planning to retire with the knowledge they need to enjoy their later years.”
Amid recent economic volatility, many Canadians are nervous with the large majority (76%) believing their generation will need to work longer than their parents’ generations to gain financial security in retirement, particularly Millennials (85%) and Gen Xers (84%). Millennials (aged 27-42 years old) specifically are anxious about their—and their families’—financial future. This includes concerns around adjustments they need to make now in order to achieve a financially secure retirement. According to the research, 82% of Canadians agree their generation can learn a lot from older generations including 85% of Millennials who agree, implying that their generation could learn a lot from the experience of those retiring right now.
Women Retirees
The study also reveals the resilience of retired women, despite their greater likelihood of being on their own and less financially secure. Retired women are more likely than retired men to be widowed (17% vs. 4%). They are also slightly less likely to have experienced significant personal illness or health issues compared to their male counterparts (28% vs 31% of retired men). In fact, Canadian women live an average of four years longer than Canadian men.1 Faced with this, retired women are more likely to make the smarter everyday economic choices such as reducing everyday expenses (51% vs. 43% of men) and/or adopting a more frugal lifestyle (42% vs. 31% of men). It is important to note that while women often face greater challenges in retirement than their male counterparts, they are also more likely to make certain changes across the four pillars, a testament to their resilience and adaptability in the face of retirement challenges.
Sage Advice For Younger Generations
Retirees have sage advice for younger people looking ahead to their futures: planning matters. When asked what they wish they would have done differently when preparing for retirement, retirees indicated they would have started saving earlier and more (40%), reduced debt or paid off a mortgage (23%) and/or educated themselves on how to manage and spend down money in retirement (16%).
While these course corrections have the potential to make a positive impact, the type of finance-related course corrections that will have the most significant impact depends on individual circumstances. It could include reducing or eliminating debt, saving as much as possible during working years, developing and following a financial plan and budget, or getting financial advice from a professional. In addition to learning from other generations, Edward Jones financial advisors are an important part of the equation by providing comprehensive planning and advice to develop a unique retirement plan so Canadians can thrive across all four pillars of the new retirement: health, family, purpose, and finances.
