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Globe and Mail
04-07-2025
- Business
- Globe and Mail
Retire Rich: The family ties of a financial plan
Good morning. I hope you found some time to relax during this week of Canada Day celebrations – maybe even in the sun. Today, we're digging into how our family backgrounds can shape the way we think about, and plan for, retirement. I've been thinking a lot lately about how culture influences our financial decisions, especially when it comes to retirement. It's not just about how much we've saved or when we want to stop working. For many people, it's also about family, their legacy and obligations. New data from Fidelity Canada's 2025 Retirement Report back that up. For example, nearly 60 per cent of people born outside Canada say financially supporting their children is holding them back from retiring when they'd like. That's almost double the rate of those born in Canada. And the financial commitment doesn't stop when the kids leave school. More than half of foreign-born pre-retirees expect to continue supporting their adult children in some way through retirement. Among Canadian-born respondents, that number drops to 39 per cent. There's a similar gap when it comes to the importance of leaving behind a financial legacy: 56 per cent of immigrants said it matters to them, compared to 46 per cent of those born in Canada. Taken together, the data paint a clear picture: Retirement isn't a one-size-fits-all experience. Cultural expectations and intergenerational ties can significantly shape what it looks like, and when it begins. But numbers only tell part of the story. I want to hear yours. Have you supported or been supported by family across generations? Did your upbringing influence how you think about retirement? Whether you or your parents were born in Canada or elsewhere, send me a note at mraman@ Past financial mistakes can delay major life goals. It might sound dramatic, but many Canadians say it's their reality. Forty-one per cent of Canadians aged 30 to 44 say previous money blunders have delayed major milestones, such as paying off debt or buying a home, according to a new survey from Why it matters: Money mistakes don't just hurt in the moment, they can cast a long shadow. Survey respondents said these past choices made it harder to save, tackle debt, plan for retirement or simply live the life they want. Yes, but: Everyone makes money mistakes. What matters is what you do next. With some smart planning and consistency, it's entirely possible to get back on track. Can we renovate our basement and still retire in a decade? That's the question Romesh, 54, and Gayle, 52, are asking. Let's break it down. The numbers: The Toronto couple earns $150,000 a year, has $2-million in assets, and carries a $475,000 mortgage. They're planning a $125,000 basement renovation, with maybe another $50,000 to add a rental unit. Their goal is to retire in about a decade with $8,000 a month in after-tax income. The good news: They're in solid shape. A financial planner says they can reach their goals, even with the renovation, as long as they make a few smart moves. Key steps, from a financial planner: Plus: A rental suite could boost their net worth by 11 per cent, but they'll need to weigh the potential tax impact and whether they want to be landlords later in life. 🚨 Traditional retirement is changing. The idea of working until 65, retiring and never working again is fading. Many people are retiring earlier, then starting businesses, freelancing or even becoming influencers. We want to hear about what your second act is. Tell me about it at mraman@ ☀️ Will Canadian snowbirds in Florida go extinct? Florida just isn't the sunny escape it once was for many Canadian retirees. Rising costs, a shaky loonie and growing U.S.-Canada trade tensions have prompted some to stay north or even sell their winter homes altogether. A new law may ease the pressure by helping condo owners with rising maintenance fees, but for many, the Florida dream is starting to dim. 🩺 The 101 on preventing falls as you age. Falls can be dangerous at any age, but they're especially serious for older adults. In Canada, they're the leading cause of injury-related hospitalizations for those over 65. The good news? You can lower your risk with simple preventative measures, such as balance-focused exercises and regular strength training. 🏡 Cheaper housing could lead to a retirement crisis. That sounds intense, but opinion writer John Turley-Ewart could have a point. Many Canadians rely on the equity in their homes to fund retirement. If housing prices drop, that nest egg shrinks. With just 38 per cent of today's work force covered by employer pension plans, more people are depending on home sales to finance their later years. 🤑 Gen Z is better at saving for retirement than you might think. A New York Times article dives into how American Gen Zers are contributing to their 401(k)s more than millennials did when they first entered the workforce. DIY investing and easier access to financial knowledge through social media could be a big reason why. 📱 Stop paying roaming fees on vacation. If you're headed out of the country this summer, don't just turn on roaming and hope for the best ... that's a fast track to a hefty phone bill. Instead, call your provider before your trip and ask about travel plans or perks (many have options they don't advertise). Or, consider getting an eSIM, a digital SIM card already built into your phone. Services like Airalo, aloSIM and Global YO let you buy international data packages before you even leave.
CTV News
10-06-2025
- Business
- CTV News
Canadians believe they need $1 million to retire comfortably: report
Canadians preparing to retire believe they need $1 million or more to retire comfortably, according to Fidelity Canada's 2025 retirement report. This is the 20th year for the annual report, which shares the latest insights on Canada's retirement landscape. The study was done between March 13 and March 28, 2025, with 2,000 Canadians surveyed. The median age of participants was 62. Here are some of the report's key findings: 88 per cent of respondents agree retirement today is more complex than it was 20 years ago pre-retirees aged 45 and up believe they need at least $1,020,000 to achieve a comfortable retirement – more than double the amount 20 years ago in 2005, the same age group felt they needed $447,000 to retire, which equates to $685,000 in 2025 81 per cent of retirees feel positive about retirement, while only 59 per cent of pre-retirees feel positive 85 per cent agree retirement is about transitioning to flexible work arrangements or passion projects rather than stopping work completely Inflation, current turmoil in world politics and poor economic growth were cited as the main concerns for Canadians, according to the report. Uncertain times can affect pre-retirees, who are still in a period of accumulating wealth to support their retirement. Due to rising costs of living, 46 per cent of pre-retirees say they might postpone retirement to later than they planned. In 2005, the average age of retirement was 61, which has risen to 65 in 2025. Only 26 per cent of current pre-retirees plan to retire under 65. Canadians who have a financial advisor and written financial plan say they feel more prepared for their retirement. Women and those not born in Canada had a less positive outlook on their retirement. Fidelity Canada said this shows there isn't a one-size-fits-all approach to financial planning.
