Canadians' retirement spirits

TORONTO, Oct. 22 /CNW/ - Canadians are facing the economic downturn with resolve and have changed their spending habits as a result, according to the second edition of the Sun Life Financial Canadian Unretirement(TM) Index. Sixty per cent of Canadian workers have reduced their debt, with almost the same number (59 per cent) saying they have spent less since January.

"In December 2008 we saw that many Canadian workers were conflicted about their retirement prospects, but now, almost a year later, there's an increased confidence in their ability to save enough for certain things like basic living and medical expenses," said Dean Connor, President, Sun Life Financial Canada. "According to our survey, paying housing expenses is the number one financial priority of Canadian workers until about age 51, when retirement saving takes over as the top priority."

Thinking about their retirement prospects, Canadians are feeling more confident, with more respondents anticipating that they will not be working longer than they originally intended and more Canadians believing their retirement will be as comfortable as they had hoped, compared to December 2008 - the last time the Index was conducted.

According to the study, 55 per cent of Canadians now believe they will be retired at age 66, up from 51 per cent in December 2008, while 45 per cent believe they will be working either full-time or part-time. Canadians had mostly positive reasons for intending to work past the traditional age of retirement, such as remaining mentally active and enjoyment of career.

The survey also found that Canadians who use a financial advisor are more confident in their futures:

- Eighty-six per cent feel they are making better decisions about their

finances

- Only 37 per cent of those with an advisor said they now expect to

work longer than originally expected, compared to 48 per cent without

an advisor

"These findings are in line with the feedback we have received from clients," said Connor. "Unfortunately, half of those surveyed don't work with an advisor, and they're really missing out on some valuable guidance and peace of mind."

Measuring Canadians' overall retirement confidence

The Sun Life Canadian Unretirement(TM) Index measures the confidence that Canadian workers have towards issues that influence retirement. The lower the index number, the more negative or pessimistic the outlook is on issues that influence retirement.

This second of multiple studies yielded an overall index score of 51 on a scale of 0 to 100, compared to a score of 50 in December 2008. This compares to the American Unretirement(SM) Index score of 44.

Confidence levels were significantly higher for Canadians who worked with a financial advisor. The overall index score was 51 for all working Canadians.