Investors focused on retirement income

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Canadian investors are suffering from signs of uncertainty and declining financial health thanks to Greece disease, according to the Russell Financial Health Index (RFHI).

The study says they are most concerned about having a reliable source of income and leading an active and healthy lifestyle in retirement.

“According to the RFHI, investors’ confidence in their financial health declined to the lowest levels since the benchmark was established in early 2008,” says Fred Pinto, managing director of distribution services at Russell Investments Canada Ltd. “These results reflect the anxiety and much less positive mood of some investors as the market has reacted to economic indicators and global factors, such as the situation in southern Europe.”

The findings of the survey show that investors are also more concerned about having sufficient income to cover their essential expenses and the financial impact on medical and healthcare needs.

The health index employs an online calculator to gauge the overall financial health of Canadian investors. The second quarter of 2010 saw it decline to the lowest level recorded to date of 47 points (higher points indicate greater financial optimism).

However, Canadian investors continue to have a positive outlook for the growth of the North American economy. The recently released Russell Investment Manager Outlook shows that 63% of Canadian investment managers are bullish on Canadian equities, while 61% are optimistic about U.S. equities.

“Investors should also keep in mind that the Canadian and U.S. economies continue to show signs of stability,” says Pinto. “Positive economic indicators may result in strong capital market returns going forward.”

(07/30/10)