Almost a third of Canadians approaching retirement have no financial
TORONTO, Nov. 18, 2015 /CNW/ - A new report released by RBC Wealth
Management, entitled Retiring in Canada, finds that while Canadians are often saving enough for retirement, the
lack of a financial retirement plan is causing the most uncertainty
when they near retirement.
"Everyone has their own goals for retirement, from spending more time
with family to buying a vacation property, but we're seeing a gap in
their planning to make those goals a reality," said Tony Maiorino,
vice-president and head, RBC Wealth Planning Services. "For Canadians
approaching retirement it is important to have a practical perspective
on their future that focuses on how to achieve their desired lifestyle
- rather than simply on what retirement will cost."
From estate planning to sources of retirement income, Retiring in Canada discusses how to customize a proper financial plan to meet your own
specific needs and goals. A full financial plan goes well beyond just a
savings figure, but takes into account changes in the market,
charitable donations, travel plans and future family health to help
ensure you can live the life you want after you stop working.
"The Baby Boomers will create a mass exodus from the workforce in the
coming years, but they often don't know what they actually need
financially," said Maiorino. "However, despite these concerns, we have
found that retirement funds either went further than expected or that
retirees were pleasantly surprised by the adequacy of their retirement
The RBC Retirement Myths and Realities Poll suggests much of this disconnect can be attributed to the lack of a
financial plan heading into retirement. The poll found that 28 per cent
of Canadians approaching retirement had no financial plan. This number
decreased to 19 per cent among retirees.
The report offers practical tips to consider discussing with a financial
planner when developing a financial retirement plan, including:
1. You may need less than you think
According to the same RBC poll, 91 per cent of retirees were optimistic
that their money would last for at least their lifetime. This is
compared to 79 per cent of those approaching retirement who held the
This situation can be the result of a number of factors. Many Canadians
will be able to live mortgage-free in retirement, while other demands
on income may also drop after they stop working, including monthly
costs of public transportation, dining out, gasoline, parking expenses
and business attire.
2. Re-consider your approach to investing
There are multiple factors that can influence your approach, including
the level of your investment knowledge and how involved you want to be.
For example, if you anticipate a slower pace of life in retirement, you
may end up having additional time to review your investments more
closely. You may want to participate in investment decisions more
actively or, quite the opposite, you may be too busy to keep track of
your portfolio performance and would rather leave the decision-making
to an investment professional.
3. Look for alternative sources of retirement income
The general rule of thumb is that retirement income comes from three
areas: government income sources, employer retirement plans or pensions
and personal savings, which generally encompasses registered and
However, in some instances, these sources of income might not provide
sufficient coverage during retirement. A financial advisor can help
create a plan to help you meet your goals, from income splitting in
retirement and maximizing government benefits, to other options such as
using the equity in your home.
About the Sixth Annual RBC Retirement Myths & Realities Poll
This annual poll examines Canadians' expectations and experiences in
retirement. It was conducted via online interviews by Ipsos Reid from
March 16 to 24, 2015, using a national sample of 2,223 adults aged 50
and over with household assets of at least $100,000. The results are
based on a sample where quota sampling is employed to balance
demographics and ensure that the sample's composition reflects that of
the actual Canadian population. Quota samples from the Ipsos online
panel provide results that are intended to approximate a probability
sample. The precision of Ipsos online polls is measured using a
credibility interval. In this case, the poll is accurate to within ± 3
percentage points, for each of the retired and not retired samples, 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.
About RBC Wealth Management
RBC Wealth Management is one of the world's top five largest wealth managers*. RBC Wealth
Management directly serves affluent, high net worth and ultra high net
worth clients globally with a full suite of banking, investment, trust
and other wealth management solutions, from our key operational hubs in
Canada, the United States, the British Isles, and Asia. The business
also provides asset management products and services directly and
through RBC and third party distributors to institutional and
individual clients, through its RBC Global Asset Management business
(which includes BlueBay Asset Management). RBC Wealth Management has
more than C$778 billion of assets under administration, more than C$503
billion of assets under management and approximately 4,050 financial
consultants, advisors, private bankers, and trust officers. For more
information, please visit www.rbcwealthmanagement.com.
*Scorpio Partnership Global Private Banking KPI Benchmark 2015. In the
United States, securities are offered through RBC Wealth Management, a
division of RBC Capital Markets, LLC, a wholly owned subsidiary of
Royal Bank of Canada. Member NYSE/FINRA/SIPC.
Royal Bank of Canada is Canada's largest bank, and one of the largest
banks in the world, based on market capitalization. We are one of North
America's leading diversified financial services companies, and provide
personal and commercial banking, wealth management, insurance, investor
services and capital markets products and services on a global basis.
We employ approximately 79,000 full- and part-time employees who serve
more than 16 million personal, business, public sector and
institutional clients through offices in Canada, the U.S. and 38 other
countries. For more information, please visit rbc.com.
RBC supports a broad range of community initiatives through donations,
sponsorships and employee volunteer activities. In 2014, we contributed
more than $111 million to causes worldwide, including donations and
community investments of more than $76 million and $35 million in
For further information:
Suzanne Willers, 416-974-2727, firstname.lastname@example.org
Jean François Thibault, 416-955-6435, email@example.com