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Live Long And Prosper?
RBC Poll Finds Canadians Aged 50 Plus Expect to Live Longer
on Less
Planning for longevity and inflation is key
TORONTO, May 17, 2011— An overwhelming
majority (90 per cent) of Canadians aged
50 plus who have not yet retired expect to have a successful
retirement, yet more than a third (36 per cent) are worried
that they do not have enough money to live well and do what
they want, according to the 2nd Annual RBC
Retirement Myths & Realities Poll.
In addition, Canadians aged 50 plus who are not yet retired
are expecting to live into their mid- to late 80's, with 46
per cent basing this longevity
projection on family history and 17 per cent on their current
health. They also anticipate that, by their mid- to late 70's,
their present lifestyles will change due to health or disability
constraints - leaving approximately a ten-year gap when they
may become more dependent on others.
"As life expectancy rates continue to rise, it becomes
very important to plan for longevity, which includes taking
into account the impact of changing health circumstances,"
said Lee Anne Davies, head, Retirement Strategies, RBC. "We
know that success in retirement will look different for each
individual, no matter what their age. When circumstances change,
you need to manage your finances well - leading up to and
throughout your retirement."
To financially support their retirement years, pre-retirees
list their top income
sources as follows:
- RRSPs/RRIFs (90 per cent)
- Government and employer pension plans (84 per cent and
58 per cent respectively)
- Old Age Security (66 per cent)
- Equity in their homes (56 per cent).
Furthermore, keeping pace with inflation
is top of mind with pre-retirees, but poll findings indicate
that they may not have the best inflation strategy in place.
Only one-third (35 per cent) responded that they have invested
with inflation in mind; of that percentage, males are more
likely to do so (37 per cent). More than two-thirds (70 per
cent) of pre-retirees stated they would adjust their lifestyle
as necessary to cope with inflation; of that percentage, females
stated they would be even more willing to make lifestyle adjustments
(77 per cent).
"Everyone hopes to have enough flexibility and funds
to live the way they want to in retirement and not to have
to depend on anyone else for financial or other assistance,"
explained Davies. "The reality is that there are a number
of factors in our retirement that we can't control, such as
inflation and, to some extent, longevity. Working through
the possibilities with a financial planner - to better understand
what impact inflation or a disabling health issue could have
- can help ensure your life in retirement is what you want
it to be."
About RBC's retirement planning and other financial advice
and interactive tools
Your
Future by Design® is RBC's distinctive approach to
help Canadians identify, plan, and realize their goals for
retirement. With the guidance of RBC financial
planners and investment
planners and retirement planners, Your Future by Design
helps Canadians 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 our toll-free number at 1-866-335-4055. In addition,
whether Canadians want to get more from their day
to day banking, protect what's important, save and invest,
borrow with confidence or take care of their businesses, the
RBC Advice Centre
can help answer their questions. Free interactive tools and
calculators provide customized information covering many facets
of personal finance and online advice videos are updated regularly
to answer questions that are top of mind with Canadians. With
the guidance of RBC advisors who are available to chat live,
Canadians have access to free, no obligation professional
advice about RBC products and services and personalized
one-on-one banking service. For more assistance, please
visit www.rbcadvicecentre.com.
About the RBC Myths & Realities
Poll
The 2nd Annual RBC
Retirement Myths & Realities Poll, which annually
examines Canadians' expectations and experiences in retirement,
was conducted by Ipsos Reid from February 25 - March 7, 2011.
For this survey, a national sample of 2,245 adults aged 50
and over with household assets of at least $100,000 from Ipsos'
Canadian online panel was interviewed. 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.
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For more information, please contact:
Kathy Bevan, RBC
Corporate Communications,
(416) 974-2727
Elyse Lalonde,
RBC Media Relations,
(416) 974-8810
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