Live for today, save for tomorrow - RBC poll shows Canadians
can have it all, with a little planning
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Survey
results
(pdf 8 pages, 200 kB) |
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TORONTO, December 18, 2006 — Striking the right
balance isn't easy, but Canadians are finding a way to live
well today without shortchanging their future, according to
RBC Financial Group's 16th Annual RRSP Survey.
Results from RBC's poll show that owning a home and saving
for retirement are the top two financial priorities for Canadians
- 61 per cent of respondents say their most important financial
goal is home ownership; 56 per cent say it's retirement savings.
"Canadians want to make the most of life in the moment,
and they aren't necessarily willing to put their plans for
the future on hold," said Dave Richardson, vice-president
of RBC Asset Management Inc. "They're looking for ways
to maximize their savings and investments to meet immediate
financial commitments like mortgages, car payments, and putting
their children through college or university. The challenge
is to do the right planning, to find the balance between being
able to live well today, and still being financially comfortable
tomorrow."
As part of their plan, more Canadians are looking to home
equity as a way to help support themselves in future. According
to RBC's poll, one in three (34 per cent) Canadians who are
not yet retired are expecting that their home will be a source
of retirement income. Of those considering their homes to
be a primary or secondary source of income in retirement,
40 per cent anticipate that the sale of their home, or the
use of their home's equity, will account for up to half of
their retirement income.
"While some Canadians may consider their home to be
a significant source of retirement income, home equity is
better viewed as one of a diversified mix of investments designed
to provide retirement income," said Richardson.
Interestingly, two out of every three (65 per cent) Canadians
are planning for their retirement years, and while this is
most likely among those aged 55 plus (73 per cent), two thirds
(67 per cent) of those aged 35-54 and almost half (48 per
cent) of those in the relatively young age category of 18
to 34 years are planning for their retirement.
"This is the first time in the 16 years we've been conducting
this poll that this younger age group has figured so strongly
in these retirement planning statistics," said Richardson.
Younger Canadians are increasingly accumulating retirement
savings to support their future plans. Sixty-two per cent
of those aged 18 to 34 now hold RRSPs - up from 44 per cent
five years ago. In all age groups, a record number of Canadians
now have RRSPs - 68 per cent, up from 57 per cent just five
years ago. More Canadians are also factoring in retirement
savings as part of their budget, with 34 per cent contributing
through a monthly or quarterly plan - up from 29 per cent
in 2003.
FINDINGS AT-A-GLANCE
Top-of-mind financial priorities
- 61 per cent...Home ownership
- 56 per cent...Retirement savings
- 53 per cent...Reducing debt
- 53 per cent...Trying to keep your head above water
- 45 per cent...General savings for a rainy day
Setting a goal gets you there
- 65 per cent…of those who have set retirement savings
goals, feel they are well ahead, or almost exactly where
they think they should be
- 55 per cent...get professional advice on RRSPs and other
investments
- Of that 55 per cent...the vast majority (83 per cent)
are working with their financial advisors to make financial
decisions.
These are the findings of an RBC Financial Group/Ipsos Reid
poll conducted between October 12-26, 2006. For the survey,
telephone interviews were conducted with a random sample of
1,201 Canadian adults (aged 18 and older). With a sample of
this size, the results are considered accurate to within ±2.8
per cent, 19 times out of 20.
- 30 -
Media contact:
Kathy Bevan, (416) 974-8810
For full tabular results, please see the Ipsos-Reid website
at www.ipsos.ca
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