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 ball."
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
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.
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Kathy Bevan, RBC, 416-974-2727
Seema Sharma, RBC, 416-974-5606