RBC poll: saving for retirement top financial priority for
Canadians
TORONTO, January 9, 2005 — For the first time
since 1999, more Canadians are recognizing saving for retirement
as their number one financial priority. This is a shift from
previous years when Canadians said that keeping their heads
"above water" was their primary financial focus.
According to the 15th Annual RBC RRSP Survey, when Canadians
were requested to identify their biggest financial concern
right now, 38 per cent cited saving for retirement ahead of
trying to keep their ahead above water (27 per cent) and general
savings for a rainy day (25 per cent). Twenty-eight per cent
said they were primarily concerned with making regular payments
to reduce debt, a new option presented to respondents for
the first time this year.
"As the population ages, perhaps it's no surprise that
Canadians are placing more focus on saving and planning for
their future life-phases," said Dave Richardson, vice-president,
RBC Asset Management. "Many of us are in an age range
that will be rounding that corner in the next five to ten
years. Fortunately, economic conditions are currently working
in our favour and the benefits of lower interest rates and
greater borrowing flexibility are translating into an increased
capacity to concentrate on retirement savings."
Those who currently do not have debts (44 per cent), those
that have a sophisticated understanding of their personal
investments (42 per cent), and those who own a RRSP (46 per
cent) are the groups most likely to say that their top financial
priority is saving for retirement. Those over the age of 35
are likely to put retirement savings at the top of their financial
priority list (42 per cent versus 23 per cent among those
age 18-34).
Further proof that Canadians are more serious about retirement
savings than they used to be, is that the average planned
contribution for the 2005 tax year is $5,700. This is an increase
of $140 over last year and nearly double the amount contributed
in 1993 ($2,866). At $61,656, the average current market value
of RRSPs is down slightly from last year, but up substantially
from 2001 when the average value sat at $50,662.
"In the last few years, Canadians may have been focused
on other financial priorities, such as reducing home mortgage
debt," said Richardson. "Our poll suggests that
they may now be adjusting their approach and are taking advantage
of favourable economic conditions to diversify and recommit
to RRSP savings."
The RBC study also notes two-thirds (66 per cent) of Canadians
currently have a RRSP. This is essentially unchanged from
the 65 per cent who had one last year and up nine per cent
from 2002. Thirty-two per cent plan to contribute their maximum
allowable which is down from 39 per cent last year.
Regionally, those living in Alberta ($7,773) plan to contribute
the most to their RRSPs, followed by those in Ontario ($6,731),
British Columbia ($5,792), Manitoba/Saskatchewan ($5,060),
Atlantic Canada ($4,028) and Quebec ($3,911). The biggest
contributions will be coming from Canadians age 35-54 ($6,884
vs. $4,403 among for age 18-34, and $3,803 for those age 55
and over).
"Canadians are sending a clear message about how important
retirement savings are with this year's poll findings,"
said Richardson. "When it comes to making their life
plans actionable, their willingness to save and plan tells
us Canadians want to be in the driver's seat to ensure they
arrive at their planned destination."
These are the findings of an Ipsos Reid/RBC poll conducted
from November 11 to November 21, 2005. For the survey, a representative
randomly selected sample of 1,250 adult Canadian was interviewed
by telephone. With a sample of this size, the results are
considered accurate to within ±2.8 percentage points,
19 times out of 20, of what they would have been had the entire
adult Canadian population been polled. The margin of error
will be larger within regions and for other sub-groupings
of the survey population. These data were weighted to ensure
the sample's regional and age/sex composition reflects that
of the actual Canadian population according to the 2001 Census
data.
About RBC Financial Group
Royal Bank of Canada (TSX, NYSE: RY) uses the initials RBC
as a prefix for its businesses and operating subsidiaries,
which operate under the master brand name of RBC Financial
Group. Royal Bank of Canada is Canada's largest bank as measured
by market capitalization and assets, and is one of North America's
leading diversified financial services companies. It provides
personal and commercial banking, wealth management services,
insurance, corporate and investment banking, and transaction
processing services on a global basis. The company employs
approximately 60,000 people who serve more than 14 million
personal, business and public sector clients through offices
in North America and some 30 countries around the world. For
more information, please visit www.rbc.com.
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For more information, please contact:
Judi Levita, (416) 974-8810
David Saffran, Ipsos Reid, (416) 324-2900
For full tabular results, please see the Ipsos Reid website
at www.ipsos-reid.com.
Downloadable graphics also available at www.rbc.com/newsroom.
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