In a time of economic uncertainty and changing demographics, preparing for retirement is a top concern for people of all ages. A 2023 Fidelity Retirement Report addresses these concerns and offers strategies to help relieve the stress associated with this important life transition. In this article we’ll highlight four key insights from the report to consider as you prepare for retirement:
Understanding pre-retirees’ financial unpreparedness
People approaching retirement are becoming increasingly pessimistic about their retirement options due to rising living costs and a sense of financial unpreparedness.
The Fidelity report reveals that 64% of pre-retirees are hesitant to retire due to these financial pressures, with 58% expressing concerns about not having saved enough. This trend is particularly evident among those aged 65 and older, as many are increasingly postponing their retirement due to the rising costs of living.
Importance of financial advice to prepare for retirement
Navigating the complexities of retirement planning can be overwhelming, but seeking guidance from a financial advisor can make a significant difference. According to the report, 63% of pre-retirees who seek advice from a financial advisor feel adequately prepared for retirement, a stark contrast to the 38% who do it alone. This trend continues into retirement, with 89% of retirees who have engaged with a financial advisor expressing confidence in their retirement plans.
The impact of comprehensive financial planning
A key takeaway from the report is the power of having a comprehensive financial plan. Pre-retirees with a written plan are not only more financially prepared, but also more emotionally, socially, and physically ready for retirement. The data shows that 85% of pre-retirees with a comprehensive financial plan report having a positive outlook on retirement, compared to just 55% of those without a plan.
Simplifying financial plans with a financial advisor
Developing a financial plan can be complex, but working with a financial advisor can simplify the process. The report highlights that 82% of those with a written financial plan worked with an advisor to develop it, showing the value of professional expertise in personalized retirement planning.
Whether you’re just starting to plan for retirement or have already retired, engaging with a knowledgeable advisor can provide invaluable support and clarity in navigating the path to a secure and fulfilling retirement.
For many Canadians, transitioning to a comfortable retirement life is a big consideration. For homeowners aged 55+, there is a way to boost your retirement income which can help you in fully transitioning to retirement, without having to work. A CHIP Reverse Mortgage from HomeEquity Bank allows you to cash in up to 55% of the value of your home. You can receive this tax-free money either in a lump sum or in regular payments, to allow you to increase your retirement income to a level that allows you to live retirement on your terms.
A key advantage of a reverse mortgage is that you don’t have to make regular mortgage payments. You only pay back what you owe when you move out or sell your home, so your retirement income isn’t negatively impacted.
You can find out how much you qualify for with a CHIP Reverse Mortgage by calling us at 1-866-522-2447 or by using our reverse mortgage calculator.
