Canadians think a retirement of their dreams is out of reach:
RBC poll
Retired Canadians are spending less in their first year
of retirement but still more than they expected
TORONTO, January 18, 2010 — Nearly all Canadians
(90 per cent) feel they will have enough income to cover their
necessities in retirement but only one-in-four Canadians (25
per cent) feel they will have enough money to fulfill their
retirement dreams, according to the 20th Annual RBC RRSP Poll.
The poll found that most retired Canadians (75 per cent)
didn't know how much they spent in their first year of retirement,
virtually unchanged from 2008 (76 per cent). Those who know
how much they spent had lower costs in their first year of
retirement, having spent close to $35,000, down from $51,000
in 2008. However, half of these respondents (52 per cent)
said they spent more than expected, up from 46 per cent in
2008.
"How much money you'll need in retirement depends on
how you'll be spending your time, with many Canadians underestimating
the amount they will need," said Lee Anne Davies, head,
Retirement Strategies, RBC Royal Bank. "Financial planning
is more than just number crunching and your retirement is
not a single phase of your life, but a series of stages. A
personalized financial plan can look at options to make your
nest egg last and help ensure your retirement needs and dreams
are met."
When thinking about retirement, the study found that Canadians
who have not retired were most worried about having enough
savings (48 per cent), while only 29 per cent of retirees
had this concern. Both pre-retirees and retirees are concerned
about maintaining their standard of living (40 per cent).
Retirees are also more likely to be worried about healthcare
(33 per cent) than pre-retirees (28 per cent).
"All of these concerns are valid. Whether retired or
not, your life will be somewhat unpredictable at times and
you need to be ready when life throws you a curve ball. This
is where having a plan can provide peace of mind - you'll
know you've considered the unexpected and you've taken the
steps to save for your retirement," said Davies.
These are some of the findings the RBC 20th Annual RBC Poll
conducted by Ipsos Reid between October 21 and November 2,
2009. For this survey, a national sample of 1,457 adults from
Ipsos' Canadian online panel was interviewed online. Weighting
was then employed to balance demographics and ensure that
the sample's composition reflects that of the adult population
according to Census data and to provide results intended to
approximate the sample universe. A survey with an unweighted
probability sample of this size and a 100 per cent response
rate would have an estimated margin of error of ±2.56
percentage points 19 times out of 20 of what the results would
have been had the entire population of adults in Canada been
polled. All sample surveys and polls may be subject to other
sources of error, including, but not limited to coverage error,
and measurement error.
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:
Suzanne Willers, RBC, 416-974-2727
Matt Gierasimczuk, Media Relations, 416-974-2124
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