Financial Life Stages

As we get older we have an increased reliance on deposits.

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Definition of the 3 different financial life stages

PRE-RETIRED

Preparing for retirement

RETIRED

Making the transition from working life to retirement

75+

Adjusting to health challenges and declining net worth

Why is deposit insurance so important to older Canadians?

Canadians aged 50 and older count for the largest portion of personal deposits.
More than half have GICs.

AGE 50+

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Holds GIC

All deposits

3 most common investment plan disruptions

Across the age spectrum, the 3 most common investment plan disruptions are

Giving financial support to an adult family member/relative that is having difficulty

0
%

Paying significant healthcare expenses for self or a family member

0
%

Losing money in the stock market and not making it back

0
%

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Financial Situation

PRE-RETIRED

RETIRED

75+

NET WORTH

high

FINANCIAL CONCERNS

at their

peak

FINANCIAL ADVICE SOUGHT

broad

range

Investment Style

PRE-RETIRED

RETIRED

75+

INVESTMENT RISK-TAKING

starting to

decline

ATTITUDE TOWARD INVESTMENTS

optimistic

about future earnings


How the pre-retired cope with unexpected financial setbacks

0
%

STOPPED SAVING
DID NOT RESUME

0
%

STOPPED SAVING
THEN RESUME

0
%

BORROWED
MONEY

0
%

CASHED IN SAVINGS /
INVESTMENTS

0
%

CUT HOUSEHOLD
SPENDING

Percentage of Canadians over 50 that have heard of deposit insurance

0
%

PRE-RETIRED

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0
%

RETIRED

Vector image of a retired person
0
%

75+

Vector image of a 75+ person

How many know the limit is $100,000?

PRE-RETIRED

RETIRED

75+

23%

How many Canadians wrongly believe that their USD accounts are protected?

PRE-RETIRED

RETIRED

75+

Don't know

27%

Know they are not protected

48%

Wrongly believe they are protected

25%
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How many Candians wrongly believe that their mutual funds are protected?

PRE-RETIRED

RETIRED

75+

Wrongly believe they are protected

35%

Know they are not protected

45%

Don't know

21%
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Conclusion

Canadians need to plan for the financial implications of life events that occur as we age.

Knowing how deposit insurance works and how you can maximize your protection can bring some peace of mind so you can fully enjoy your retirement.

Did you know?

It is important for older Canadians to be aware of CDIC, since this demographic has the most savings to lose and fewer working years to recover.

Close to 98% of personal accounts are eligible for deposit protection under CDIC’s seven categories and $100,000 limit.

It’s important to remember U.S. dollar accounts and some investment products, such as mutual funds, stocks and bonds, are not protected by CDIC.

Understanding CDIC coverage helps Canadians make informed decisions about their savings, which helps support confidence in our financial system.


Sources:

Finanical Life Stages of Older Canadians, prepared by The Brondesbury Group for the Ontario Securities Commission, Spring 2015

CDIC's quarterly omnibus telephone survey, March 2016