Canadian retirees were impacted more negatively by the economic downturn than workers, a recent survey by Desjardins Financial Security reveals.

The 2009 Rethink Retirement survey, which involved interviews with more than 1,500 Canadians in August, found that 40% of retirees say their financial situation deteriorated in 2009, compared to 30% workers.

More than half of retirees – 53% — say their savings and investments have fallen this year, versus just 36% of working Canadians.

Furthermore, 26% of working Canadians said that things improved during the recession, compared to just 8% of retirees.

What caused retirees’ financial situation to deteriorate? More than one in four respondents cited stock market losses and a higher cost of living. When it came to workers, women were more likely to mention job losses than men.

Seven in 10 retirees stated that because of the deterioration in their financial situation, they are just barely covering their expenses.

In contrast, despite the recession, close to one in five workers surveyed reported that their income went up due to a raise, overtime pay or a better job, while fewer than one in ten retirees could claim the same. Others improved their financial situation by paying off debt: 18% of workers reported this.