Canadians remain concerned about having sufficient income for their desired lifestyle in retirement, and are particularly concerned about the financial impact of a medical issue or the death of a spouse, suggests a new report from Russell Investments Canada Ltd.
Overall, for the first quarter of 2012, the Russell Financial Health Index — an online calculator that gauges the financial health of Canadian investors around retirement — rose slightly to 47.62, up from the previous quarter of 47.08, to the highest level in more than a year.
“Financial markets have had a good start to the year and that’s helped Canadians feel a little better about their financial security in retirement,” says Bob Leeming, director of client solutions, Russell Canada. “But as baby boomers head into their retirement years, they’re starting to worry about issues such as their health and their spouse’s health. Changes to benefit plans and government programs are having a huge impact on the ability to address all expenses, for example, medical costs, so it’s not surprising that the Russell Financial Health Index is reflecting those issues.”
The results of the latest index indicate that although investor confidence is returning, Canadians still have real concerns about their financial health in retirement.