A new study by the Bank of Nova Scotia has revealed that 55% of investors are concerned about how inflation could cut into their retirement plans.
According to the Scotia Global Asset Management Investor Sentiment Survey involving 1,022 Canadians, 59% of people were pessimistic about their investment plans – a significant jump compared to 33% who said the same in 2021.
A looming recession weighed down on respondents’ minds, as 61% expressing worries about such a possibility.
Another 58% said market volatility was a major issue while 40% cited rising interest rates. 37% said that geopolitical developments were a major risk.
“These results indicate that investors have current concerns about meeting their retirement goals; however, regular meetings with financial advisers and having a written financial plan diminish those concerns,” head of Scotia Global Asset Management, Neal Kerr said.
The BMO Real Financial Progress Index also found some worrying trends. Their study found that only 52% of women were confident about retiring and that 73% didn’t have a financial plan to reach retirement.
“As the cost of inflation and the financial impacts of the pandemic have significantly affected many women, it’s understandable that they are feeling the need to rebuild their savings and feeling less confident about retiring at the age they had planned,” said BMO head of everyday banking Gayle Ramsay.
“With most women reporting they have no financial plan in place, they can start to alleviate their anxiety and take control of their finances by evaluating their budgets, adjusting spending habits accordingly and committing to a savings and retirement plan.”