A recent CIBC survey finds that the pandemic has impacted Canadians’ savings and their anticipated lifestyle in retirement. 40% of respondents worry about the effect of COVID-19 on their savings and retirement plans, with 23% unable to contribute to their retirement nest egg since the pandemic began.

Of those who feel COVID-19 has affected their retirement plans, many feel their expected vision for their post-work lives has changed. 32% no longer plan on travelling or will travel much less than planned. Many Canadians also feel they will need to work longer than expected – for 30%, this is due to a COVID-19-related loss of household income, and for 26%, they feel the pandemic has significantly increased the cost of retiring. Additionally, out of those who intended to downsize their primary residence in their golden years, 40% are now unsure of the right time to make this move.

A higher number of men (68%) say they feel confident about managing investments in retirement, compared to women (57%). Women are also more likely to turn to friends and family for retirement advice (25%), whereas many men (23%) claim they make all decisions about money matters on their own.

“This is a pivotal time to get advice about your ambitions for retirement,” said Laura Dottori-Attanasio, Group Head, Personal and Business Banking. “An expert can help re-assess your financial plan, create new estimates for retirement income, identify ways to improve cash flow and adjust timelines if needed to meet your overall goals.”

The survey also found:

  • 26% of those between the ages of 34-55 and 20% of Canadians over the age of 55 have been unable to contribute to retirement savings since the pandemic began
  • Of those who feel COVID-19 has affected their retirement plans, 24% say the pandemic has made them realize they can live with less and will significantly reduce their discretionary spending in the long-term
  • Lessons Canadians say they’ve learned during the pandemic include: there’s a need to pay more attention to personal finances (20%); not to panic when markets get volatile (21%); and it’s important to save for retirement/their future (19%)

To help Canadians with retirement planning amidst the pandemic, CIBC is hosting a free webinar (in English and French) featuring a number of financial experts on November 3rd, 2020. For more information and to register, visit the website here.

Source: Cision