Despite volatile markets and unsettling times, the vast majority of Canadian retirees rate their financial health to be “good,” “very good,” or “excellent,” according to a Russell Investments Canada Ltd. survey, conducted in conjunction with Harris/Decima, or more than 2,200 Canadians across the country.

“Retirement is not as scary as many people suggest. While it is true that some pre-retirees are anxious about their future well-being, the majority of Canadians at virtually every stage of retirement say they are happy, confident, and financially secure,” says Irshaad Ahmad, president and managing director of Russell Investments Canada.

According to the results, only 65% of pre-retirees expect their financial health in retirement to be “good”, “very good” or “excellent”. However, 88% of actual retirees rate their financial health to be “good”, “very good” or “excellent”.

“In fact, further research revealed that 10 years before retirement, 40% of Canadians felt anxious about their retirement finances. But by their retirement date, this number falls to 27%, and within the first three to five years of retirement, it falls to only 10%,” explains Harris/Decima senior vice president, Bob Murphy.

“This shows that despite the perception of doom and gloom by pre-retirees when it comes to their financial futures, the reality is that everything is going to be alright – with the right investments, advice, and planning.

The survey also reveals that actual retirees report needing only 60% of their pre-retirement income; it has generally been suggested that retirees will require 80% of their pre-retirement income to maintain a comfortable lifestyle.

“Certain living expenses tend to drop significantly during retirement as most retirees are mortgage-free and no longer incur employment costs such as daily transportation,” says Ahmad. “However, for a comfortable retirement, retirees should still plan for lifestyle expenses related to travel, hobbies, and entertainment by seeking investment solutions that still have growth potential. Just because you are retired, doesn’t mean your portfolio has to.”

In addition, although retirees draw income from many sources, part-time work is rarely one of them as 68% of pre-retirees expect to work part-time during retirement, yet only 27% of current retirees actually do. Among the minority who do continue to work during retirement, only 23% do so out of financial necessity.

“We believe this research can help Canadians better prepare for retirement in two ways. First, by replacing the potentially paralyzing fear of retirement as a financial threat with a realistic, fact-based sense of optimism,” says Ahmad. “And second, by showing that taking advantage of professional financial advice and a sensible investment strategy helps Canadians achieve a retirement that is both personally fulfilling and financially healthy. Going forward, investors can expect continued retirement research and leadership from Russell in the future.”