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COVID-19 2021 Study: COVID Causing Canadians to Rethink Their Plans for Retirement

Monday, February 22, 2021 12:00:00 PM

- Health, family and home take on added importance as Canadians prepare for their next chapter. -

IG Wealth Management released the results of a study that shows Canadians are rethinking their approach to retirement planning as a result of the COVID-19 pandemic.

According to the study, which was conducted by Pollara Strategic Insights for IG, almost half of Canadians who are not currently retired say the pandemic has made them rethink what their retirement will look like, and how they will get there. Further:

- 63 per cent report that they would now prefer to spend their retirement in their own home, rather than a retirement facility;
- half say the pandemic has made them prioritize being closer to family and remaining in Canada, rather than living abroad; and
- one-third of Canadians who are not retired feel the pandemic will cause them to delay their retirement.

"It's understandable that the events of the past year have caused many Canadians to pause and re-think what their futures will look like, including their plans for retirement," said Damon Murchison, President & CEO, IG Wealth Management. "Whether it's staying in your current home for longer or re-evaluating how much healthcare coverage might be needed, these changing priorities can have a significant impact on your finances. This makes it all the more important to have a financial plan in place that includes a robust retirement component. And, perhaps just as critically, one that can evolve and be adapted to reflect your changing priorities."

Thinking About Finances More Holistically

The study also revealed that most (88 per cent) of working Canadians reported being uncertain about the amount of money they will need during their retirement to cover monthly expenses. Other key findings included:

- 67 per cent now see a greater need for an emergency fund, both now and in retirement;
- half of Canadians are now considering getting their estate plans in order before they retire;
- two-fifths are thinking about the amount of healthcare coverage they will need in retirement; and
- 46 per cent believe they might need more money in retirement than they had originally thought.

SOURCE: IG Wealth Management