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Four-in-ten Canadians retiring with debt: RBC Poll
Inflation and taxes are top concerns for Canadians over
the age of 50
TORONTO, April 26, 2010 — Four-in-ten Canadians
(39 per cent) over the age of 50, who have assets of at least
$100,000, retired with some form of debt and one-quarter (22
per cent) entered retirement with a mortgage on their primary
residence, according to the first annual RBC Retirement Myths
and Realities poll, which examines Canadians' expectations
and experiences in retirement.
The majority of retirees (70 per cent) feel it is still important
to be able to save part of their income, yet more than one-quarter
(28 per cent) have acquired new credit products since they
retired.
"More and more, Canadians are carrying debt into retirement,
which is not necessarily a bad thing," said Lee Anne
Davies, head, Retirement Strategies, RBC. "Having access
to credit in retirement can be beneficial to managing income
and cash flow and provide additional flexibility. To help
make your retirement dreams a reality, our advice is to start
early and prepare a comprehensive financial action plan that
will keep you focused on paying down debt and saving, as well
as establishing a budget for both your pre- and post-retirement
years."
Inflation and taxes are among the top concerns for retirees,
with more than one-third (35 per cent) worried that inflation
will negatively impact their retirement income, compared to
43 per cent of pre-retirees. Six-in-ten (62 per cent) retirees
worry about taxes on their income, with two-thirds (66 per
cent) believing the percentage of their income required for
taxes will rise in the next 10 years. Retirees say they are
currently living on 56 per cent of their pre-retirement income,
indicating that spending drops significantly in retirement.
"It's not uncommon to be concerned about maintaining
a sustainable level of income in retirement, but costs you
never counted on may also arise," added Davies. "For
example, our poll found that almost one-in-five retirees spend
over $1,000 annually on prescription drugs. Working with a
qualified advisor can help you prepare for taxes, inflation
and unexpected costs that may impact your retirement goals."
These are some of the findings the RBC Retirement Myths &
Realities poll conducted by Ipsos Reid from March 10 -19,
2010. For this survey, a national sample of 2,143 adults aged
50 and over with household assets of at least $100,000 from
Ipsos' Canadian online panel was interviewed online. 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 ±2.1 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
Cyndi Maisonneuve, RBC, 416-974-1757
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Poll
(pdf, 4 pages, 103kB) |
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