Almost 60% of Canadians with a retirement portfolio are unaware that rising interest rates can erode the value of some of their investments, according to a survey.
The CIBC Asset Management survey also finds that baby boomers are particularly in the dark, with 65% unaware of the impact of rising rates.
Fifty-four percent of Canadians are not thinking about changing their retirement savings strategy in a rising interest rate environment, with that number climbing to 62% for boomers.
“Canadians understand the impact that rising rates have on household expenses, such as mortgages and loans,” says Steve Geist, president of CIBC Asset Management. “But, it’s equally important for Canadians—especially those approaching retirement and preparing to draw income from their portfolios—to be aware of the impact that rising rates can have on their investments.”
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