EDWARD JONES STUDY: Canadian Retirees Provide Valuable Lessons to Future Generations
News release | May 24, 2023
Resilience, Redefining Success and Thriving in Retirement
MISSISSAUGA, ONTARIO – May 24, 2023 – Edward Jones Canada, in partnership with Age Wave, a thought leader on population aging, has released its third study on retirement that builds on previous findings further exploring how Canadians can improve retirement across the four pillars: health, family, purpose, and finances. The new study – “Resilient Choices: Trade-Offs, Adjustments, and Course Corrections to Thrive in Retirement” uncovers that today’s thriving retirees are redefining success in retirement by making resilient choices – providing a valuable model for Canadian Millennials.
While retirees overwhelmingly agree (92%) that “preparation, flexibility, and willingness to adapt are key to success in retirement,” this new breed of retirees knows they will face challenges and are increasingly willing to make a wide variety of adjustments, trade-offs, and course corrections – something other generations can learn from.
“Making resilient choices is becoming more essential to pre-retirees and generations of future retirees who are not yet financially prepared to retire. In the face of new challenges faced by retirees, pre-retirees and even younger generations like Millennials, resilient retirement planning has never been more important,” says David Gunn, President of Edward Jones Canada. “Insight across generations can equip people planning to retire with the knowledge they need to enjoy their later years.”
Amid recent economic volatility, many Canadians are nervous with the large majority (76%) believing their generation will need to work longer than their parents’ generations to gain financial security in retirement, particularly Millennials (85%) and Gen Xers (84%). Millennials (aged 27-42 years old) specifically are anxious about their—and their families’—financial future. This includes concerns around adjustments they need to make now in order to achieve a financially secure retirement. According to the research, 82% of Canadians agree their generation can learn a lot from older generations including 85% of Millennials who agree, implying that their generation could learn a lot from the experience of those retiring right now.
The study also reveals the resilience of retired women, despite their greater likelihood of being on their own and less financially secure. Retired women are more likely than retired men to be widowed (17% vs. 4%). They are also slightly less likely to have experienced significant personal illness or health issues compared to their male counterparts (28% vs 31% of retired men). In fact, Canadian women live an average of four years longer than Canadian men.1 Faced with this, retired women are more likely to make the smarter everyday economic choices such as reducing everyday expenses (51% vs. 43% of men) and/or adopting a more frugal lifestyle (42% vs. 31% of men). It is important to note that while women often face greater challenges in retirement than their male counterparts, they are also more likely to make certain changes across the four pillars, a testament to their resilience and adaptability in the face of retirement challenges.
Sage Advice for Younger Generations
Retirees have sage advice for younger people looking ahead to their futures: planning matters. When asked what they wish they would have done differently when preparing for retirement, retirees indicated they would have started saving earlier and more (40%), reduced debt or paid off a mortgage (23%) and/or educated themselves on how to manage and spend down money in retirement (16%).
While these course corrections have the potential to make a positive impact, the type of finance-related course corrections that will have the most significant impact depends on individual circumstances. It could include reducing or eliminating debt, saving as much as possible during working years, developing and following a financial plan and budget, or getting financial advice from a professional. In addition to learning from other generations, Edward Jones financial advisors are an important part of the equation by providing comprehensive planning and advice to develop a unique retirement plan so Canadians can thrive across all four pillars of the new retirement: health, family, purpose, and finances.
The summary of the insights can be found by visiting: www.edwardjones.ca/newretirement
Age Wave and The Harris Poll partnered with Edward Jones in research and investigation for this study.
The research was conducted online in Canada by The Harris Poll on behalf of Age Wave among 1,515 Canadian adults, aged 50+ who were either retired or within 10 years of retirement. The survey was conducted January 3-31, 2023. The results discussed in this report reflect Canadian sample only.
An additional nationally representative survey was conducted February 7-9, 2023, among 1,019 Canadian adults age 18+
Data in each survey are weighted where necessary to bring them into line with their actual proportions in the population.
- Statistics Canada, “Life expectancy and other elements of the complete life table,” 2022.
About Edward Jones:
Edward Jones is a full-service investment dealer which provides a range of investment products, services, and solutions to retail investors. We have close to 850 financial advisors in Canadian communities from coast-to-coast. A member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund, the firm is also a participating organization in the Toronto Stock Exchange. Edward Jones has been ranked #1 nine times in the last 11 years in the J.D. Power Canada Full-Service Investor Satisfaction Study. For more information, visit edwardjones.ca.
About Age Wave
Age Wave is the nation's foremost thought leader on population aging and its profound business, social, financial, health care, workforce and cultural implications. Under the leadership of co-founders Ken Dychtwald, Ph.D., and Maddy Dychtwald, the firm has provided breakthrough research, compelling presentations, award-winning communications, education and training systems, and results-driven consulting initiatives to over half the Fortune 500. For more information, please visit www.agewave.com.
About The Harris Poll
The Harris Poll is a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. It works with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. One of the longest running surveys in the U.S., The Harris Poll has tracked public opinion, motivations and social sentiment since 1963, and is now part of Stagwell, the challenger holding company built to transform marketing. To learn more, please visit www.theharrispoll.com.