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Retirees unaware of how much money they spent during first
year of retirement, according to RBC poll
TORONTO, February 4, 2009 — According to the 19th Annual RBC
RRSP Poll, three- in-four retired Canadians (76 per cent)
are unaware of how much money they spent in their first year
of retirement. Of those who are aware, almost half (46 per
cent) say it was more than expected, 12 per cent say it was
less and 42 per cent say they didn't have any expectations.
"Before retiring it's important to be aware of how much
money you think you'll spend once you've retired," said
Lee Anne Davies, head, Advanced Retirement Strategies, RBC.
"Take the time to get an idea of what your day-to-day
expenses are. This way, you'll also have more time to make
adjustments in your investment strategy - to ensure that your
nest-egg can provide the retirement lifestyle you've been
planning for."
Not only are the majority of Canadians unaware of how much
they spent in their first year of retirement, the study found
that over one-third (39 per cent) of retired Canadians encountered
costs they did not anticipate in retirement. Of those, almost
half (45 per cent) encountered unanticipated home repairs
or maintenance costs, 42 per cent experienced unplanned healthcare
costs and 36 per cent experienced unintended vehicle repair
costs.
When retired Canadians were asked about spending in the first
three years of retirement, three-quarters (75 per cent) say
they made large purchases. Forty-one per cent said they spent
money on a trip, 38 per cent bought a car and 37 per cent
made home improvements.
"When it comes to retirement planning, professional
advice has never been more important than it is today,"
said Davies. "Successful planning takes discipline, knowledge
and experience. It's key to ensuring your retirement dreams
won't be sidetracked by unforeseen costs or large purchases."
According to the poll, day-to-day living expenses make up
the majority (58 per cent) of annual spending for retirees,
followed by health care (10 per cent), treating themselves
(nine percent), supporting their family (eight per cent) and
treating their family (eight per cent). Pre-retirees, on the
other hand, believe that 47 per cent of their annual spending
in retirement will be allocated towards day-to-day living
expenses,
12 per cent for health care, 14 per cent for treating themselves,
10 per cent for supporting their family and 10 percent for
treating their family.
About the 19th Annual RBC RRSP Poll
The 19th Annual RBC RRSP Poll was conducted by Ipsos Reid
from October 16 to 23, 2008. This online survey of 1,272 Canadians
was conducted via the Ipsos I-Say Online Panel, Ipsos Reid's
national online panel. The results of this poll are based
on a sample where quota sampling and weighting are employed
to balance demographics and ensure that the sample's composition
reflects that of the actual Canadian population according
to Census data. Quota samples with weighting from the Ipsos
online panel provide results that are intended to approximate
a probability sample. Statistical margins of error are not
applicable to online polls, however, an unweighted probability
sample of this size, with a 100 per cent response rate, would
have an estimated margin of error of ± 2.7 percentage
points, 19 times out of 20, had the entire adult population
of Canada been polled.
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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Media contacts:
Sarah Pendrith, RBC Wealth Management, 416-974-8820
Jackie Braden, Media Relations, 416-974-2124
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Poll
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