The ‘Late Financial Bloomer’ faces a complex retirement journey

A new group of consumers, dubbed the ‘Late Financial Bloomers’ are set to change the face of retirement¹. An array of socioeconomic factors, such as later home ownership, are the primary drivers behind this shift.

Divorce and marriage trends are also key contributors, as is later childbirth. First marriages now take place four years later than they did 20 years ago; similarly, divorce rates peak 20 years later than they did two decades previously. With more women over 40 now giving birth each year than those under 20, a growing proportion of the population will be supporting children through education later in life, diverting attention from retirement planning.

Currently, accounting for just 6% of retirees, the number of Late Financial Bloomers is set to rise considerably over the next 15 years or so. The trend towards later financial security means an increasing number of people will face complex retirement journeys, highlighting the requirement to plan ahead.

¹Canada Life, 2021