Generation gap still evident in attitudes toward planning, RRSPs
TORONTO, Feb. 7, 2012 /CNW/ - Decades may separate Canada's younger generation from Boomers, but some of the attitudes of
both age groups toward retirement and balancing financial priorities
are strikingly similar, according to RBC's 22nd Annual RRSP Poll.
The vast majority of Canadians aged 18-34 and 55-69 say if they were to outlive their savings in retirement, the idea that their families would step in to take care
of them would not be very appealing (82 per cent and 91 per cent,
respectively). Similarly, a majority in each age group (78 per cent and
72 per cent) worry about balancing saving for immediate priorities with putting money aside for the longer
term or retirement.
Where a gap still exists between these two generations is in financial
Six-in-ten younger Canadians do not have a financial plan, compared to nearly the same number of older Canadians who do have such a plan (59 per cent).
Of both age groups who do have a plan, 40 per cent of younger Canadians
say they have a plan "in my head", compared to 21 per cent of Boomers.
More than half (52 per cent) of Boomers report they have their plan on
paper, while just over one-quarter (28 per cent) of younger Canadians
have a written plan.
"We always advise our clients to have a written plan, as this allows
them to map out their progress and then take action," advised Jason
Round, head of Financial Planning Support, RBC Financial Planning. "If
you have a written plan, you also can share it with a financial planner
or advisor and revise it as your goals change."
As the annual RRSP contribution deadline approaches, making plans for
the future is more top of mind for both younger and older Canadians,
but those aged 18-34 still trail Boomers in RRSP ownership and
contribution rates. While 43 per cent of younger Canadians now hold RRSPs, this number still lags behind the 69 per cent of Boomers with RRSPs.
Also, only 16 per cent of the younger RRSP holders are planning to maximize their RRSP contributions by this year's February 29, 2012 deadline;
that percentage almost doubles (31 per cent) for older Canadians.
"We know it's difficult for younger Canadians to think about a time when
they will stop working and they'll be looking to their RRSPs for
income," noted Round. "Retirement seems like a very remote concept when
you're just beginning your career, buying a home or starting a family.
What both younger and older Canadians can visualize, however, is a
future they hope to enjoy on their own terms. Building up an RRSP now -
even with very small contributions - can help ensure that future."
About the 22ndAnnual RBC RRSP Poll
This survey was conducted by Ipsos Reid between October 24 and November
15, 2011 via a random sample of 1,224 adults in the general population
(aged 18 and over). 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 1,224 Canadian
respondents, with 100 per cent response rate, would have an estimated
margin of error of ±3 per cent, 19 times out of 20.
About RBC's financial planning advice, resources and interactive tools
The RBC Advice Centre offers free online advice, resources and tools
regarding RRSPs - including the RSP-Matic® Savings Calculator and updates on the federal government's RRSP First Time Home Buyers' Plan. Whether Canadians want to save and invest, buy their first home, get more from their day to day banking, protect what's important, or
take care of their businesses, the RBC Advice Centre can help answer their questions. Interactive tools and calculators
provide customized information covering many facets of personal
finance. 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 service.
Further information is available at rbcadvicecentre.com. In addition, RBC's myFinanceTracker, a comprehensive online financial management tool, offers all personal
RBC online banking clients the ability, at no cost, to create a set budget and track their
spending habits and to access H&R Block tax-related apps in the new myTax Centre, to help manage and plan their taxes.
Image with caption: "22nd Annual RBC RRSP Poll: "If I outlive my retirement savings..." (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20120207_C9976_PHOTO_EN_9715.jpg
Image with caption: "22nd Annual RBC RRSP Poll: "Worried about balancing saving today and saving for the future?" (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20120207_C9976_PHOTO_EN_9712.jpg
Image with caption: "22nd Annual RBC RRSP Poll: "Have a Financial Plan?" (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20120207_C9976_PHOTO_EN_9714.jpg
Image with caption: "22nd Annual RBC RRSP Poll: RRSP ownership in 2011 (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20120207_C9976_PHOTO_EN_9713.jpg
Image with caption: "22nd Annual RBC RRSP Poll: Maximum RRSP contribution intentions for 2011 tax year (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20120207_C9976_PHOTO_EN_9711.jpg
For further information:
Kathy Bevan, RBC Corporate Communications, (416) 974-2727, firstname.lastname@example.org
Kate Yurincich, RBC Corporate Communications, (416) 974-1031, email@example.com