Planning for longevity and inflation is key
TORONTO, May 17 /CNW/ - 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
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
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.
For further information:
Kathy Bevan, RBC Corporate Communications, (416) 974-2727, firstname.lastname@example.org
Elyse Lalonde, RBC Media Relations, (416) 974-8810, email@example.com