When will you pack it in? RBC poll asks Canadians what
drives their retirement decisions
Money (of course) but health care considerations are increasing in importance
TORONTO, February 20, 2008 — According to the
latest RBC RRSP poll, nearly seven in ten Canadians (69 per
cent) believe that determining the amount of money needed
for a comfortable retirement is the key driver in their decision
about when to retire. Even though money is key for most Canadians,
they are also increasingly aware of the importance of their
health care and lifestyle needs when planning their retirement.
"As the RRSP contribution deadline on February 29 approaches,
many Canadians are thinking about their savings and whether
they will have enough money to retire comfortably," said
Lee Anne Davies, head, advanced retirement strategies, RBC.
"But how do you determine how much money you will need
until you have a clear picture of your retirement, taking
into account things like your lifestyle, health care and family
The survey showed that health care is becoming a more important
consideration. Three in five Canadians (60 per cent) think
that their health care needs are also an important driver
in their decision to retire, up from 54 per cent in 2006.
Nearly half of respondents (49 per cent) expect to use some
of their retirement savings to pay for health care costs -
on average one-fifth of their retirement savings.
"As Canadians come to terms with the health impacts
associated with aging, they realize that some of their retirement
savings will be needed to pay for health care costs which
may not be covered by government or employer programs,"
Despite this realization, Canadians are optimistic about
their retirement lifestyle. More than four in five respondents
(81 per cent) believe they will have a comfortable lifestyle
in retirement - but views on how much money is needed vary
dramatically. According to those surveyed, retirees, on average,
say they had a goal of nearly $450,000 as the amount of money
required for a comfortable lifestyle. However, people who
have yet to retire think they will need nearly double that
amount, or almost $900,000. Among Canadians who have not yet
retired, men and women have dramatically different views -
men estimate that they will need more than $1,000,000 to retire
comfortably, while women put the figure closer to $675,000.
"As we have also seen in our past research, people approaching
retirement don't always have a realistic view of how much
money they need to retire comfortably and that men and women
have substantially different perspectives," added Davies.
"Retirement is a major decision and there really is no
magic number. The figure will differ for each individual based
on their needs, goals and circumstances."
When asked about their primary source of income in retirement,
Canadians are clearly taking matters into their own hands
and not relying on government help. Nearly three in ten (28
per cent) say their primary source of income will be their
company pension and almost an equal number (27 per cent) expect
that it will be income from their own investments. Only 17
per cent say their largest source of income will be a government
The 18th Annual RBC RRSP Poll was conducted by Ipsos Reid
from October 23 to November 5, 2007. The telephone survey
was based on responses from a random sample of 1,200 Canadian
adults (aged 18 and over). 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.
Your Future by Design® is RBC's distinctive approach
to help clients identify, plan, and realize their goals for
retirement. With the guidance of RBC financial planners and
investment and retirement planners, Your Future by Design
helps clients create a blueprint for a successful lifestyle
and financial plan for retirement based on what is truly important
to them in key areas in life, including family, health, home,
lifestyle, work/business, mind and spirit, and legacy. To
find out more about how RBC can help build a blueprint for
the future, visit www.rbc.com/yourfuture
or call 1-866-335-4055.
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Rina Cortese, RBC
Wealth Management, (416) 974-6970
RBC Media Relations, (416) 974-2124