Happy 65th Birthday Boomers: RBC Examines Boomers
Outlook on Retirement as They Reach a Milestone Year
TORONTO, December 16, 2010 — As the first wave
of Canada's Boomer generation turn 65 years old in 2011, almost
one-quarter (23 per cent) are concerned about having enough
savings, according to the 21st Annual RBC RRSP Poll.
However, the majority (71 per cent) of Boomers who will reach
their milestone 65th birthdays next year, with financial plans
in hand, say that they are better off financially as a result
of those plans. Two-thirds of 64-year-old Boomers first developed
their financial plan at an average age of 35, once they began
accumulating assets and started saving. Four-in-ten (42 per
cent) Boomers have a formal written financial plan, compared
to 19 per cent of the country's general adult population.
"As a significant portion of Canada's population nears
age 65 and the reality of retirement looms closer than ever,
it's interesting to note that many have a written financial
plan," said Lee Anne Davies, head, Retirement Strategies,
RBC. "We know a financial plan can provide you with direction
and the confidence in knowing your options and how you are
going to achieve your goals even if life throws you a curve
The RBC poll also found that overall, Boomers say their best
outcome for retirement would be good health (28 per cent)
followed by living life the way they envisioned (25 per cent)
and having saved enough money for a comfortable retirement
(23 per cent). For 64 year old Boomers, the vast majority
(67 per cent) is in agreement that the best gift they could
receive is "good health."
"It's not surprising that health is on the minds of
Boomers and that's why we are focusing more on how health
and wealth are intertwined - we know how critical both are
to a successful and happy retirement," added Davies.
"The older all of us become, the more we realize that
retirement is less about money and more about fulfillment
and living life on our own terms."
2010 RRSP FAST FACTS
- More Canadians (61 per cent) have an RRSP this year, compared
to 2009 (61 per cent vs. 54 per cent).
- Many Canadians are waiting until the last minute to contribute
to their RRSPs. One-in-three (30 per cent) planning to make
a one-time RRSP contribution expect to do so in the month
- A quarter of Canadians with RRSPs (24 per cent) plan to
maximize their contribution for the 2010 tax year.
- One-third of Canadians (34 per cent) who are contributing
to an RRSP plan to contribute more than in 2009.
- Only one-in-three RRSP investors (34 per cent) make regular
contributions through a plan.
- While mutual funds are still the top planned RRSP investment
choice (42 per cent) for the 2010 tax year, there is a renewed
interest in stocks (19 per cent compared to 12 per cent
These are some of the findings from the RBC 21st Annual RRSP
Poll conducted by Ipsos Reid between October 29 and November
4, 2010. For this survey, a national sample of 1,457 adults
from Ipsos' Canadian online panel were interviewed. 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. For the older sample, a national
sample of 3,226 50 to 69 year old adults including Boomers,
with assets of at least $100,000 from Ipsos' Canadian online
panel were interviewed. The results are based on samples where
quota sampling and weighting are employed to balance demographics
and ensure that the sample's composition reflects that of
the actual population according to Census data. Quota samples
with weighting from the Ipsos online panel provide results
that are intended to approximate a probability sample. A weighted
probability sample of 1,457 Canadian respondents, with 100
per cent response rate, would have an estimated margin of
error of ±3 per cent, 19 times out of 20. An unweighted
probability sample of 3,226 U.S. respondents, with 100 per
cent response rate, would have an estimated margin of error
of ±2 per cent, 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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Kathy Bevan, RBC, 416-974-2727
Seema Sharma, RBC, 416-974-5606