Retirement Income Planning all the more important to prepare for
TORONTO, Nov. 15, 2013 /CNW/ - Although a large majority (80 per cent)
of Canadians approaching retirement believe they will get to pick the
day they step away from their careers, in reality 41 per cent of
retirees report that they did not leave on a date of their choice,
according to the RBC 2013 Retirement Myths & Realities Poll. Key reasons specified for their unanticipated departure were
employer's request (41 per cent) and health reasons (22 per cent).
"As Canadians approach their retirement, planning ahead takes on added
importance," noted Amalia Costa, head, Retirement Strategies &
Successful Aging, RBC. "Your retirement date may not be something you
can control, but you can shape your retirement income plan to take the
unexpected into account, so you are better prepared financially, no
matter how much time you may have before you retire."
The annual poll, which surveys Canadians aged 50 plus, also revealed
20 per cent of retirees had as little as one month or no advance notice before retirement, with a majority (65 per cent) reporting they had
notification one year or less before their retirement date.
"Chances are two out of three retiring Canadians will have less than a
year to transition into their next stage of life and they are going to
have to create a new paycheque to support that next stage," said Costa.
"We advise our clients to begin refining their retirement 'roadmap' at
least five years before they expect to retire, to get a clearer idea of
their retirement lifestyle, as well as the corresponding retirement
income plan that will help them achieve it."
This five-year review is a crucial reality check for anyone approaching
retirement, added Costa. "It's important to work with a financial
advisor who can help you prepare for retirement, no matter when your
retirement date actually occurs."
Other key findings from the RBC 2013 Retirement Myths & Realities Poll
Almost three-quarters (72 per cent) of fully retired Canadians responded
that, in hindsight, they had retired "at the right time".
Among fully retired Canadians who felt they had retired at the right
time, the following reasons were cited for feeling this way:
"I wanted to enjoy active retirement while my health is good" - 79 per
"I didn't need any more money/had enough money" - 37 per cent
"I wasn't happy at work" - 26 per cent
"I wanted to join retired spouse/partner" - 20 per cent
"Health concerns" - 14 per cent
"I wanted to volunteer" - 13 per cent
"I needed to take care of someone else" - eight per cent
The top strategies cited by Canadian retirees for supplementing their retirement income if
Move (downsize, rent, etc.) or stay in my home and live frugally - tied
at 79 per cent
Stay in my home and sell assets - 44 per cent
Borrow against my home equity - 38 per cent
Return to paid work - 29 per cent
Stay in my home and rent a part of my home to create income - 16 per
Take out a loan without borrowing against my home equity - 10 per cent
Ask a family member for financial help - five per cent
About RBC's financial planning advice, resources and interactive tools
Canadians can access RBC Financial Planning and rbc.com/savingsspot for free planning, budgeting and savings advice and resources, or to
find the nearest Investment and Retirement Planner. In addition, Seniors Finance and Caregiving is a new online resource centre which includes comprehensive caregiving
information for Canadians to help them plan for a successful
retirement. For Canadians who 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. Interactive tools and calculators such
as the Debt Reduction Plan and Debt Consolidation Calculator, provide customized information covering many facets of personal
finance. All personal RBC online banking clients also can use myFinanceTracker, a no-cost interactive financial management tool, to create a set
budget, track their spending habits and access tax-related apps in myTax Centre, to help manage and plan their taxes.
About the Fourth Annual RBC 2013 Retirement Myths & Realities Poll
This annual poll examines Canadians' expectations and experiences in
retirement. It was conducted via online interviews by Ipsos Reid from
February 27 to March 12, 2013, using a national sample of 2,159 adults
aged 50 and over with household assets of at least $100,000 from Ipsos'
Canadian online panel. 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 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
For further information:
Kathy Bevan, Communications, RBC, 416 974-8820