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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Suzanne Willers, RBC, 416-974-2727
Matt Gierasimczuk, Media Relations, 416-974-2124