Seven in ten Canadians are concerned they have not saved enough for retirement; and more than six in ten have not taken measures to protect their portfolios against the potential of rising interest rates because they aren’t sure what to do, according to an AGF Management Limited study.
Only one in ten indicated they were confident they will reach their retirement goals. Yet, when considering their current investment state relative to where they want to be when they retire, more than half (57%) believe they need to ‘stay the course’ and continue with their current investment strategy, indicating a disconnect between beliefs and actions.
Canadians also tend to take little action during down markets. On average, they believe they lost between 10% and 50% of their investment portfolio as a result of the market slide of 2008. Even in the face of a substantial equity setback, less than half (49%) made adjustments to their portfolio.
When it comes to current investing strategies, 56% are concerned about the impact of rising interest rates, but three in five (59%) claim they do not know what to do about it. Similarly, although 80% understand that there are benefits to global diversification, 59% are unsure if investing outside of the country is worth the risk.
Overall, one in five say they do not have any investments outside of Canada and an equal number are unsure if they do.
The survey found that three out of five have a financial advisor and three quarters of them believe that he or she is important in helping them make investment decisions. As well, 75% of this group is very or somewhat active in planning for their retirement. As age rises, so does the belief that financial advisors are very important.
Read: Don’t delay planning