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Boomer business owners more likely to delay retirement,
according to RBC poll
TORONTO, February 18, 2009 — Thirty-seven percent
of Canadian boomers who plan on retiring in the next five
years and who own their own business plan on delaying their
retirement due to current economic conditions, according to
the 19th Annual RBC RRSP Poll.
"Knowing when to leave the workforce is a tough decision,"
said Lee Anne Davies, head, Advanced Retirement Strategies,
RBC. "The best way to decide when to retire is to think
about the lifestyle you want to lead in retirement and create
a plan to help ensure financial stability and built-in flexibility
to adjust to changing life and economic conditions."
The survey also found that more than a quarter (28 per cent)
of Canadian boomers plan on delaying their retirement due
to current economic conditions. Forty-three per cent of boomers
say their retirement has been delayed between one and two
years, 37 per cent say three-to-five years and nine per cent
say they don't know.
"Even for Canadian entrepreneurs who never intend to
fully retire from their business, it's important to regularly
fine-tune their long-term plan," said Davies. "Whether
you foresee gradually stepping away from your business, working
part-time or full time, having a plan that clearly outlines
your lifestyle goals and sources of income will help business
owners prepare for their golden years."
According to the survey, one-third (32 per cent) of retiring
boomer business owners, say they will never fully retire,
19 percentage points above the Canadian boomer average. When
asked where they expect to be at 65, half (50 per cent) of
retiring boomer entrepreneurs say they will be semi-retired
or working part-time, compared to 40 per cent of the general
boomer population. In addition, only 37 per cent of retiring
boomers who own their own business expect to be fully retired
at the age of 65, 10 per cent less than the Canadian boomer
average (47 per cent).
One-in-four boomers would retire immediately if they had
enough money compared to only 18 per cent of retiring boomers
who own their own business. Half (50 per cent) of boomers
say they would continue to work part-time or occasionally,
compared to 54 per cent of retiring boomer business owners.
In addition, one-in-four boomers say they would continue to
work even if they had enough money to retire. Similarly, 28
per cent of retiring boomers who own their own business would
also continue to work.
Fast Facts:
- Two-in-five (42 per cent) boomers started saving for retirement
between the ages of 35 and 54. This is slightly higher for
retiring boomers who own their own business with 43 per
cent starting to save for retirement between these ages.
- Most boomers are doing some retirement planning (77 per
cent).
- Almost all boomers have an RRSP (95 per cent). Ninety-eight
per cent of retiring boomer business owners have an RRSP.
- The majority (64 per cent) of boomers who have an RRSP
have already contributed to or plan to contribute to an
RRSP for the 2008 tax year.
- Overall, more than two-in-five boomers with an RRSP plan
to contribute the maximum allowable amount to their RRSPs.
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 3,113 Canadian
boomers (ages 50 to 69 with assets of at least $100,000) was
conducted via the Ipsos I-Say Online Panel, Ipsos Reid's national
online panel. The sample includes 934 boomers who say they
plan to retire in the next 5 years and 139 who plan to retire
within 5 years and who are also business owners. Statistical
margins of error are not applicable to online polls, however,
an unweighted probability sample of 3,113, with a 100 per
cent response rate, would have an estimated margin of error
of ± 1.8 percentage points, 19 times out of 20, had
the entire adult population of Canada been polled. A sample
of 934 would have an estimated margin of error of 3.2 percentage
points and a sample of 139 would have a margin of error of
8.3 percentage points, 19 times out of 20.
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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