- Retirement date may be impacted by unrealistic money
targets
- Savings goals range from an average of $574,000 to almost $1
million
TORONTO, July 18, 2019 /CNW/ - Canadian Boomers aged 50+
share one big concern as they approach retirement, regardless of
their personal wealth: they haven't saved enough money. What does
differ, however, is the amount they are hoping to save.
According to the Boomers surveyed for the latest RBC Retirement
Myths & Realities poll, conducted by Ipsos, the savings gap
varies widely. On average, those with investable assets of
$100,000+ want to save $949,000 and
so far, are falling over $275,000
short. Those with investable assets of less than $100,000 want to save, on average, $574,000 and are over $500,000 away from their goal. (Investable assets
typically include cash, bank account funds, retirement account
funds, etc.)
What's not clear is how realistic either of these savings goals
are. "When you peel back the layers, many Boomers worry about their
savings shortfall because they just don't know where to start,"
comments Rick Lowes, Vice-President,
Retirement Strategy, RBC. "The best approach is to start with
expectations including: the lifestyle you hope to lead in
retirement, retirement income options, and then build a plan to get
you there."
There are also a number of actions you can take ahead of
retirement, including:
- Choosing whether to delay applying for your Canadian Pension
Plan (CPP; QPP in Quebec) and Old
Age Security (OAS) once you become eligible, to benefit from
increased payments at a later age
- Determining all the sources of income you'll be able to draw
upon in retirement
- Taking full advantage of your RRSP and TFSA options
- Ensuring you have tax-smart strategies and the right
investments – and asset mixes – to help maximize your savings
The RBC poll found that not-yet-retired Boomers¹ are considering
a number of options to boost their retirement income,
including:
- Downsizing/moving – 52%
- Working in retirement – 41%
- Borrowing against home equity – 25%
- Relying on an expected inheritance – 21%
- Hoping to win the lottery – 3%
"No-one should be relying on an inheritance or a lottery win. We
also don't want anyone feeling discouraged by unrealistic savings
goals or thinking they don't have enough time. Concerns like these
can be overcome by taking control of your finances," continues
Lowes. "There could be some tough choices ahead. A half-hour
conversation with a financial planner can help you get started and
shape your retirement plans to make a real difference to your
financial future."
Regional & Gender Comparisons
Non-Retired
Canadians Aged 50 and Over¹
RESPONSES
|
CAN
|
BC
|
AB
|
SK/
MB
|
ON
|
QC
|
AC
|
M
|
F
|
[$
AMOUNT]
How much
I
think I'll
have
to save for
my
retirement
|
949K
|
958K
|
1.1MM
|
918K
|
1.01MM
|
806K
|
788K
|
1.05MM
|
872K
|
How much
I've
already
saved
for
my
retirement
|
674K
|
719K
|
821K
|
709K
|
719K
|
606K
|
331K
|
754K
|
608K
|
[PERCENTAGE]
Yes,
when
retired I
expect
to have
debts
|
19
|
21
|
16
|
24
|
16
|
16
|
29
|
20
|
18
|
I'd
downsize/
move
when
retired if I
need
more
income
|
52
|
57
|
56
|
46
|
54
|
43
|
56
|
52
|
53
|
I plan to
work
once
retired
|
41
|
48
|
43
|
47*
|
40
|
29
|
47*
|
44
|
39
|
I have no
plans
to work
once
retired
|
50
|
43
|
47
|
42*
|
50
|
63
|
45*
|
46
|
53
|
I don't
ever
plan to
retire
|
9
|
9
|
9
|
12*
|
10
|
8
|
8*
|
11
|
8
|
Yes I have
a
financial
plan...
|
78
|
74
|
83
|
79*
|
79
|
75
|
81*
|
81
|
75
|
…and
my plan is in
my head
|
…27
|
…30
|
…21
|
…21*
|
…28
|
…23
|
…34*
|
…32
|
…23
|
No, I don't
have
a financial
plan
yet
|
22
|
26
|
17
|
21*
|
21
|
25
|
19*
|
19
|
25
|
¹ With investable
assets of $100,000+
|
* Small sample
size
|
About the 2019 RBC Retirement Myths & Realities
Poll
These are the findings of the RBC 2019 Retirement Myths
and Realities Poll, conducted by Ipsos between April 2 to 8, 2019. For the overall survey, a
sample of 2,000 Canadians aged 50+ was interviewed via the Ipsos
I-Say panel and non-panel sources. Quotas and weighting were
applied to 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 this
release, the data referenced is among a sample of 900 aged 50+ who
are pre-retirees with investable assets of $100K or more, and 100 aged 50+ who are
pre-retirees with investable assets of less than $100K. The credibility of Ipsos online polls is
measured using a credibility interval. In this case the results are
considered accurate to within ±3.5 percentage points, 19 times out
of 20, for the full sample of pre-retired Boomers, ±3.7 percentage
points for those with investable assets of $100K+, and ±11.2
percentage points for those with investable assets of less than
$100K.
About RBC's Retirement and Financial Planning
Resources
RBC Retirement Planning can help you plan for
the 30 years or more you may spend in retirement. This website also
includes links to financial planners/investment & retirement
planners who can help you determine the retirement lifestyle you
hope to live, the sources of income you'll be able to draw
from when you retire, the advantages RRSPs and TFSAs offer for your
retirement and considerations to make before applying for your
CPP/QPP. Our financial advice is complemented by a free service
unique to RBC – MyAdvisor – which connects clients to advisors
and financial planners for face-to-face, real-time video or phone
meetings, where together they can view and adjust a client's
comprehensive financial picture.
SOURCE RBC Royal Bank