As financial markets continue to challenge investor portfolios, having a reliable source of income in retirement remains a concern for Canadians according to the results of the most recent Russell Financial Health Index.
In the fourth quarter of 2011, this concern was at the second highest level since the benchmark was established in early 2008, and concerns about having a tangible and realistic financial plan and reducing debt in retirement also increased.
Overall, for the fourth quarter of 2011, the Russell Financial Health Index — an online calculator that gauges the financial health of Canadian investors— was relatively flat at 47.08, down slightly from the previous quarter when it was 47.47, and at the second lowest level since the benchmark was established.
“Considering that the market volatility we experienced in 2011 is expected to stay with us in 2012, it’s only natural that Canadian investors continue to be concerned about generating a consistent level of income in their retirement years,” says Bob Leeming, director of client solutions, Russell Investments Canada.
Carrying debt into retirement is another area of growing financial concern for Canadians this quarter, increasing steadily over the last year. Numbers released by Statistics Canada last month put household debt levels at 150.8 percent of income.